Explain the bid—ask spread in the external currency market?
What will be an ideal response?
Answer: The bid-ask spread in the external currency market is the difference between the bid rate, which is the interest rate that the bank pays on its deposits and the ask rate, which is the interest rate that the bank charges on its loans. The market is very competitive, and the bid-ask spreads are small.
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Decentralization of production is appropriate when location externalities are important
a. true b. false
When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account, ________
A) total assets and total liabilities increase by the same amount B) total assets of the company remain constant C) total equity and total assets increase by the same amount D) total liabilities increase and total equity decreases by the same amount