Answers

MA

Answered

The market for insurance is an example of diversification.

On Jul 18, 2024


True
MA

Answered

When real interest rates in other countries rise relative to that in the U.S., other things being equal, we would expect the U.S. dollar to

A) appreciate.
B) depreciate.
C) inflate.
D) deflate.

On Jul 15, 2024


B
MA

Answered

Suppose that Rosa is considering migration to another country. To move, she will have to spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's explicit cost of migrating is

A) $500,000.
B) $9,000.
C) $509,000.
D) $5,000.

On Jun 18, 2024


B
MA

Answered

Three years ago a piece of equipment was purchased for $10,000. Assuming an eight-year life and straight-line depreciation, financial statements for the third year will show:

A) depreciation expense of $3,000 on the income statement, and accumulated depreciation of $3,000 on the balance sheet.
B) depreciation expense of $1,250 on the income statement, and accumulated depreciation of $3,000 on the balance sheet.
C) depreciation expense of $1,250 on the income statement, and accumulated depreciation of $3,750 on the balance sheet.
D) depreciation expense of $1,250 on the income statement, and accumulated depreciation of $1,250 on the balance sheet.

On Jun 15, 2024


C
MA

Answered

Which of the following is the formula for measuring asset turnover?

A) Current Assets ÷ Current Liabilities
B) Current Assets - Inventories ÷ Current Liabilities
C) Sales ÷ Total Assets
D) Net Income ÷ Total Assets
E) Total Debts ÷ Total Assets

On May 19, 2024


C
MA

Answered

To adjust for stock splits

A) the exercise price of the option is reduced by the factor of the split, and the number of options held is increased by that factor.
B) the exercise price of the option is increased by the factor of the split, and the number of options held is reduced by that factor.
C) the exercise price of the option is reduced by the factor of the split, and the number of options held is reduced by that factor.
D) the exercise price of the option is increased by the factor of the split, and the number of options held is increased by that factor.

On May 16, 2024


A