On April 1, Smart, Inc. paid $7,200 for an insurance premium on a three-year insurance policy. How does this transaction affect Smart's accounts

Answers

Answer 1
Answer:

Answer:

A decrease of $7,200 in the cash account and an increase of the same amount in the prepaid insurance account occurred.

Explanation:

In this case, there are only two accounts available;

1. Prepaid insurance account

2. Cash account

When Smart decided to pay $7,200 for an insurance premium on a three-year policy, he used $7,200 in cash to purchase a prepaid insurance premium at the same cost. This can be illustrated in the table below;

Account type                                     Credit                                Debit

Cash account                                                                             $7,200

Prepaid insurance account              $7,200        

Total                                                   $7,200                             $7,200

From the above illustration, we can conclude that when Smart made a decision to purchase the insurance premium, he debited $7,200 from his cash account and credited $7,200 in his prepaid insurance account.

We can conclude that a decrease of $7,200 in the cash account and an increase of the same amount in the prepaid insurance account occurred.


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Investors from Germany, the United States, and the United Kingdom frequently invest in each other’s currencies based on prevailing interest rates. If British interest rates increase, German investors are likely to buy ________ dollar-denominated securities, and the euro is likely to ________ relative to the dollar.​a. fewer; depreciateb. fewer; appreciate
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Answers

Answer:

The correct answer is (a)

Explanation:

Increase in prevailing interest rate can lead to an increase in the demand of a currency. Likewise, if the British interest rate increases, the other countries will likely to buy pounds or fewer dollar-dominated currencies or securities. So, the German investors are likely to buy fewer dollar-dominated securities and the euro is likely to depreciate relative to the dollar.

Which feature is characteristic of a market economy?A) Government provides basic goods.

B) Self-interest motivates buyers.

C) People have less economic freedom.

D) People have no property rights

Answers

The answer is B.

The 5 characteristics of a market economy are ability to own private property, freedom of economic choice, motivation by self interest, competition and limited government intervention. A sounds more socialist, as that would imply the government supplies the people with goods such as food, instead of leaving it to private enterprise.

Hope this helps.

Characteristic of a market economy is self-interest motivates buyers.  

Further explanation

A Market economy is an economic system regulated by supply and demand, not the government. Most of the resources, equipment, buildings, goods, and services in a market economy own by individual and private business. Most economic decisions are made by buyers and sellers, not the government.

Characteristics of market economy are:  

  1. Private ownership: Most of the resources, goods, and services are owned by individual or private sectors.  
  2. Freedom of choice and free enterprise: Entrepreneurs have the freedom to get and use their resources. Consumers are free to buy goods and services to fill their need.  
  3. The motive of self-interest: Entrepreneurs try to get the highest profits for their businesses. On the other hand, consumers try to get the greatest benefits from their budgets.
  4. Competition: competition ensures greater quality and lower prices for consumers .
  5. A system of markets and prices  

Another type of economic system is a market economy, traditional economy, and a mixed economic system. Nowadays, many command economies began adding aspects of the market economy, we call it a mixed economic system.

Learn more

The goal of the command economy brainly.com/question/1362251

Characteristic of a command economy brainly.com/question/2065265

The function of the economic system brainly.com/question/12060180

Keywords: command economy, central government, characteristic of a command economy, economic system

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Answers

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Answers

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Answers

The correct answer is "Fed possibly helped avert a depression and a deflation". The fairest assessment of the actions of the Federal Reserve since the advent of the financial crisis of 2008 is that the Fed possibly helped avert a depression and a deflation.

While it is true that the Fed did not use all the tools it had at its disposal, and it was not completely successful in attaining its goals, it is also important to recognize the role the Fed played in stabilizing the economy and preventing a more severe crisis in 2008 by helping to avert a depression and a deflation and that is the fairest assessment of the actions of the Federal Reserve since the advent of the financial crisis of 2008.

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