1. False: A country that allows demand and supply to be the sole determinant of the value of its currency has a floating exchange rate, not a managed exchange rate.
2. True: Under the gold standard, a country is generally unable to rapidly expand its money supply during an economic depression.
3. True: Two examples of a managed exchange rate are the gold standard and the Bretton Woods system.
4. True: A system in which two countries agree to keep the exchange rate between their currencies constant over long periods is called a fixed exchange rate system.
5. True: Today, modern economies no longer back their currencies with gold.
For more question like Statement visit the link below:
https://brainly.com/question/15968543
#SPJ11
27. Suppose that as the price of Y falls from $2.00 to $1.90 the quantity of Y demanded increases from 110 to 118. Then the price elasticity of demand is: A) 4.00 B) 2.09 C) 1.37. D) 3.94 28. If the demand for product X is inelastic, a 4 percent increase in the price of X will: A) decrease the quantity of X demanded by more than 4 percent. B) decrease the quantity of X demanded by less than 4 percent. C) increase the quantity of X demanded by more than 4 percent. D) increase the quantity of X demanded by less than 4 percent. Figure 5. $10 Price 1 1 А D 2 Demand 0 B с 5 Quantity 7 29. Refer to the Figure 5 above. If price falls from $10 to $2, total revenue: A) rises from A + B to A+B+D+C and demand is elastic. B) falls from A+D to B+C and demand is inelastic. C) rises from C + D to B+ A and demand is elastic. D) falls from A + B to B + C and demand is inelastic, 30. Refer to the Figure 5 above and assume that price declines from $10 to $2. The coefficient of price elasticity of demand relating to this change in price is about: A).25 and demand is inelastic. B) 1.5 and demand is elastic, C) 1 and demand is unit elastic, D) .67 and demand is inclastic.
The price elasticity of demand is approximately -1.37. So, the correct answer for the first question is C) 1.37.
The correct option is B) decrease the quantity of X demanded by less than 4 percent.
How to explain the informationPrice elasticity of demand = ((Q2 - Q1) / ((Q2 + Q1) / 2)) / ((P2 - P1) / ((P2 + P1) / 2))
Let's calculate the price elasticity of demand for the first question:
Price P1 = $2.00
Price P2 = $1.90
Quantity Q1 = 110
Quantity Q2 = 118
Price elasticity of demand = ((118 - 110) / ((118 + 110) / 2)) / (($1.90 - $2.00) / (($1.90 + $2.00) / 2))
= (8 / (228 / 2)) / (-0.10 / (3.90 / 2))
= (8 / 114) / (-0.10 / 1.95)
≈ (0.07018) / (-0.05128)
≈ -1.37
For the second question: If the demand for product X is inelastic, a 4 percent increase in the price of X will result in a decrease in the quantity of X demanded by less than 4 percent. So, the correct answer is B) decrease the quantity of X demanded by less than 4 percent.
For the third question: Based on the figure, when the price falls from $10 to $2, the total revenue falls from A + D to B + C. This indicates that demand is inelastic. So, the correct answer is B) falls from A+D to B+C, and demand is inelastic.
For the fourth question: Percentage change in quantity demanded = ((Q2 - Q1) / ((Q2 + Q1) / 2)) * 100%
Percentage change in price = ((P2 - P1) / ((P2 + P1) / 2)) * 100%
Price P1 = $10
Price P2 = $2
Quantity Q1 = 1
Quantity Q2 = 5
Percentage change in quantity demanded = ((5 - 1) / ((5 + 1) / 2)) * 100%
= (4 / 3) * 100%
= 133.33%
Percentage change in price = (($2 - $10) / (($2 + $10) / 2)) * 100%
= (-8 / 6) * 100%
= -133.33%
The coefficient of price elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in price)
= 133.33% / -133.33%
= -1
Therefore, the coefficient of price elasticity of demand is -1, and demand is inelastic. So, the correct answer is D) -1 and demand is inelastic.
Learn more about price elasticity on
https://brainly.com/question/29615048
#SPJ4
outline 2 advantages to H&H of using secondary market research
Explain the relationship between households and firms in economics
Explanation:
Households supply labor to firms and are paid wages in return. Firms use that labor to produce pizzas and sell those pizzas to households. There is a flow of goods (pizzas) from firms to households and a flow of labor services (worker hours) from households to firms.
Peter is planning his finances for the next couple of years. He wants to save money to eventually buy a house because he will be getting married
soon. He has created a savings plan revolving around his necessary expenses, and he has set a target of three years to save up a down payment
for a house. At which phase of the financial life cycle is Peter in?
Peter is in the________
phase of the financial life cycle.
Fill in the blank
Answer:
Beginning is the correct answer Beginning is the correct answer Beginning is the correct answer
Explanation:
Beginning is the correct answer Beginning is the correct answer Beginning is the correct answer Beginning is the correct answer Beginning is the correct answer
some firms like financial services firms do not have physical inventory and so must rely on _______ _______ management.
Some firms like financial services firms do not have physical inventory and so must rely on service process management.
What is inventory management in financial management?Tracking inventory from producers to warehouses and from these locations to a point of sale is inventory management, a crucial component of the supply chain. Having the right products at the right location at the right time is the aim of inventory management.
Companies that use the zero inventory strategy aim to maintain little to no goods on hand. Ordering exactly what will be sold and receiving products into stock as needed are the goals of zero inventory.
Thus, it is service process management.
For more information about service process management, click here:
https://brainly.com/question/29412775
#SPJ1
four degrees of competition
Answer:
There are four types of competition in a free market system:
perfect competitionmonopolistic competitionoligopolymonopolyUnder monopolistic competition, many sellers offer differentiated products—products that differ slightly but serve similar purposes.
Hope this helps :)
how do people help millions 100 millions of people? 99 points for answering
Answer:
Well first, you must know there are a few requirements.
be a natural-born U.S. citizen of the United Statesbe at least thirty-five years oldbe a resident in the United States for at least fourteen years.Then you would be helping more than 350 million people a day!
Explanation:
what is a competitive market? briefly describe a type of market that is not perfectly competitive.
A competitive market is a market structure in which multiple buyers and sellers interact to trade goods and services. In a competitive market, no single buyer or seller has significant control over market prices. Participants in such markets have access to complete information to make well-informed buying and selling decisions.
On the other hand, a type of market in which perfect competition does not exist is a monopoly. In a monopoly, there is only one seller or provider of a particular good or service, and she has primary control over the market. This lack of competition allows monopoly sellers to set prices and production levels without being constrained by market forces.
Monopolies can arise from barriers to market entry, such as exclusive ownership of significant resources, legal restrictions, and technological superiority, among others. Lack of competition in a monopoly market can lead to higher prices, less consumer choice, and lower overall economic well-being.
To know more about competitive market visit :
https://brainly.com/question/7024827
#SPJ4
From 1979 to 2019, real earnings decreased for those having only a high school education or less. among the possible explanations for this trend offered by economists are:
Real earnings decreased for high school education because globalization has helped those with greater education more than those with less education.
Decrease in real earningsDue to globalization people with higher education or higher qualification has more advantage over those with lesser education or high school education.
This occur because technological changes in recent decades has lead or result in high demand for people with more or higher education.
Inconclusion real earnings decreased for high school education because of globalization.
Learn more about Decrease in real earnings here:https://brainly.com/question/25302588
what are you all doing for hoolween this year?
Answer: I’m having a Halloween party with my parents and family because you know ya girl ain’t trying to get sick
Explanation:
Can someone help me with this?
You are responsible for an automobile accident. Use the information below to determine:
The total amount your liability insurance will pay for the accident
The total amount your collision insurance will pay for the accident
The number of additional damages you are responsible for as a result of the accident
You and the driver of the other car were the only people involved in the accident. There were no injuries from the accident.
You have a 50/100/50 liability insurance policy with no deductible
You have collision insurance with a deductible of $500
The other car was valued at $25,000 and requires $10,000 in repairs
Your car was valued at $20,000 and requires $15,000 in repairs
Answer:
omg you have any idea
Answer:
Based on the type of insurance you have and the people involved in the accident, the total amount of liability you will pay is $25,000.
The total amount that your collision insurance will pay is $24,500 and the amount of additional damages you will pay is $0.
What is the total amount you will pay?
The coverage is 50/100/50 means that the insurance company will pay up to $50,000 for damages.
This means that the cost to repair both cars will be covered as it is less than $50,000:
= 10,000 + 15,000
= $25,000
There will be no additional damages.
The amount you will pay personally will be the $500 deductible which means that insurance will pay:
= 25,000 - 500
= $24,500
All of the following are marketing mix strategies that Chobani has used to sell its yogurt except: A. Promoting the health benefits of yogurt B. Offering a wide variety of flavors C. Using celebrity endorsements in advertisements D. Offering discounts for bulk purchases
Chobani has effectively implemented various marketing mix strategies to promote and sell its yogurt products.
However, one strategy that has not been used by Chobani is option C, which is using celebrity endorsements in advertisements. Instead, Chobani has focused on promoting the health benefits of yogurt (option A), emphasizing the use of natural ingredients and high protein content to appeal to health-conscious consumers.
The brand has also offered a wide variety of flavors (option B) to cater to diverse taste preferences and keep customers interested in their products. Lastly, Chobani has utilized option D, offering discounts for bulk purchases, as a means to attract cost-conscious consumers and incentivize larger sales. Despite not using celebrity endorsements, Chobani has successfully leveraged other marketing mix strategies to establish a strong presence in the yogurt market.
To learn more about strategies click here
brainly.com/question/28944441
#SPJ11
What is vulnerability? Give examples of vulnerability and the
mitigation method can be taken to remove it.
Vulnerability refers to a weakness or flaw in a system, process, or infrastructure that can be exploited by malicious actors to gain unauthorized access, disrupt operations, or compromise data integrity and confidentiality. Vulnerabilities can exist in software, networks, hardware, and even human factors.
Software Vulnerability: A software application may contain coding errors or design flaws that can be exploited.
Network Vulnerability: Weak network configurations, unsecured wireless networks, or outdated protocols can leave networks vulnerable.
Social Engineering Vulnerability: Humans can be a weak link in security.
Hardware Vulnerability: Flaws or weaknesses in hardware components can create vulnerabilities. For example, a hardware keylogger inserted between a keyboard and computer can record keystrokes.
Learn more about Vulnerability here:
https://brainly.com/question/15047647
#SPJ11
Select all that apply.
Learning styles include all of the following:
bodily/kinesthetic
verbal/linguistic
naturalistic
personal
Answer:
bodily/kinesthetic
verbal/linguistic
Explanation:
Learning styles can be regarded as range of competing as well as contested theories which analyse
differences that exist learning of in individuals. It should be noted that the Learning styles includes
✓bodily/kinesthetic
✓verbal/linguistic
Answer:
verbal/linguistic
bodily/kinesthetic
naturalistic
Explanation:
checked answer on Odyssey
ECONOMICS CHAPTER 2 SECTION 3
explain the relationship between the terms in each of these pairs
A. Private property rights and market
B. laissez-faire and capitalism
C. Specialization and profit
D. Factor market and product market
ECONOMICS CHAPTER 2 SECTION 3
Private property rights and market is in which people buy and sell resources or goods and services.
Private property rights are the rights of individuals and groups to own property and the market is any place or situation in which people buy and sell resources and goods and services.
Laissez-faire and capitalism-The relation-ship between laissez-faire and capitalism is laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention.
Specialization and profit- The relation-ship between specialization and profit is the companies specialize in making one product or one component of a product, if this product will make at large scale, companies reduces it's cost to earn profit.
Factor market and product market- The relation-ship between Factor market and product market is the factor market is running by the demand of product market. The product market is sold their goods and services with the demand of factor market to production these goods and services.
To know more about private property rights here,
https://brainly.com/question/23031296
#SPJ1
Help me!
Give few examples of resources that are at the risk of depletion.
Answer:
There are several types of resource depletion, the most known being: Aquifer depletion, deforestation, mining for fossil fuels and minerals, pollution or contamination of resources, slash-and-burn agricultural practices, Soil erosion, and overconsumption, excessive or unnecessary use of resources.
Aquifer depletion, deforestation, mining for fossil fuels and minerals, pollution or contamination of resources, slash-and-burn farming methods, soil erosion, and overconsumption, excessive or unneeded use of resources are some of the more well-known examples of resource depletion.
What natural resources are at risk of depletion?Minerals, oil, water, and forests are the resources that are most at risk of being exhausted. The primary driver of deforestation is agriculture, and as food prices rise, more land is being destroyed for crops. Deforestation is a major cause of carbon dioxide emissions, which contribute to global warming.
As of now, there are more than 7 billion people living on Earth, which has resulted in a significant strain on the natural resources that our planet provides due to the ever-increasing demand for these resources. Resource depletion is the correct word to use when the pace of resource use exceeds the rate of resource replenishment. Resource depletion is not a particularly fancy or difficult phrase, but it has been the focus of much research for some time.
Learn more about natural resources here:
https://brainly.com/question/13954163
#SPJ2
Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
Read more about net income here:
https://brainly.com/question/28390284
#SPJ1
As a manager, your decisions must always improve the function of an organization and contribute toward _____.
increased revenue
meeting the vision
meeting the goals
increased staff
Answer:
It's C.
Explanation:
It's definitely not meeting the vision(s) or increased staff so I narrowed it down to A and C, increased revenue and meeting the goals, saying them both in the sentence for the blank it flows and makes sense so you have to go by common-sense or knowledge so I have a good guess that it would be meeting the goals. Managers do sell stuff but rarely, and selling stuff is how you increase revenue. Trying to meet the goals is more of managers isle and from what I know of managers it wouldn't be meeting the vision in any postion.
Answer:
B. Meeting The Vision
Explanation:
I took the Instruction/Assignment and got it wrong, It's Meeting The Vision
At what stage of the target market selection process is management likely to investigate whether the organization has sufficient financial resources, managerial skills, employee expertise, and facilities to compete effectively in selected segments
Answer:
Develop market segment profiles
Although marketers may initially believe certain segments are attractive, a market segment profile may unveil new information that makes a segment less attractive than thought.
Explanation:
Which of the following BEST summarizes the purpose of Section 4 of the 25th Amendment?
A.
It provides a check on presidential power in times of war.
B.
It provides a way for the president to retain his power, even if he is impeached.
C.
It outlines the procedures to be followed in the case that the vice presidency is vacant.
D.
If the president is incapable, or unfit to
Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hold, which is called non- operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus- state income tax rate was 25%. How much was Lindley's operating income, or EBIT? O a. $4,038 Ob. $3,836 O c. $3,462 d. $4,250 Oe. $3,644
The correct option is d) $4,250. Lindley Textiles' operating income, or EBIT, is $3,836. Operating income, or EBIT (Earnings Before Interest and Taxes), can be calculated by subtracting operating costs (excluding depreciation) from sales.
In this case, the sales were $12,500 and the operating costs (excluding depreciation) were $7,250. Therefore, the operating income can be calculated as:
Operating Income = Sales - Operating Costs
Operating Income = $12,500 - $7,250
Operating Income = $5,250
However, we need to consider the effect of depreciation on operating income. Depreciation is a non-cash expense that reduces taxable income but does not impact cash flow. Therefore, we need to add back the depreciation expense to the operating income:
Operating Income (EBIT) = Operating Income + Depreciation
Operating Income (EBIT) = $5,250 + $1,000
Operating Income (EBIT) = $6,250
Next, we need to consider the interest expense on the bonds. The interest expense is calculated by multiplying the outstanding bonds amount ($8,000) by the interest rate (7.5%):
Interest Expense = Outstanding Bonds * Interest Rate
Interest Expense = $8,000 * 7.5% = $600
Finally, we need to calculate the taxable income by subtracting the interest expense from the operating income:
Taxable Income = Operating Income - Interest Expense
Taxable Income = $6,250 - $600
Taxable Income = $5,650
Applying the tax rate of 25%, we can calculate the income tax expense:
Income Tax Expense = Taxable Income * Tax Rate
Income Tax Expense = $5,650 * 25%
Income Tax Expense = $1,412.50
Finally, the operating income, or EBIT, can be calculated by subtracting the income tax expense from the taxable income:
EBIT = Taxable Income - Income Tax Expense
EBIT = $5,650 - $1,412.50
EBIT = $4,237.50
Rounding to the nearest dollar, Lindley Textiles' operating income, or EBIT, is $4,238.
Learn more about Operating income from here:
https://brainly.com/question/31421166
#SPJ11
This table shows the number of employees needed to fill lunch orders at several food trucks. Food Truck Number of Lunch Orders Number of Employees Frank’s Falafels 20 per hour 2 Kimchi Kim’s 25 per hour 3 Deli Delight 30 per hour 3 Lunch on the Go 25 per hour 2 Which food truck has the absolute advantage? Frank’s Falafels Kimchi Kim’s Deli Delight Lunch on the Go.
To determine which food truck has the absolute advantage, we need to compare the number of employees needed to fill lunch orders for each food truck.
Frank's Falafels requires 2 employees to fill 20 lunch orders per hour. Therefore, each employee at Frank's Falafels can handle 10 orders per hour on average.
Kimchi Kim's requires 3 employees to fill 25 lunch orders per hour. Thus, each employee at Kimchi Kim's can handle approximately 8.33 orders per hour on average.
Deli Delight also requires 3 employees to fill 30 lunch orders per hour. Hence, each employee at Deli Delight can handle about 10 orders per hour on average.
Lunch on the Go needs 2 employees to fill 25 lunch orders per hour. Thus, each employee at Lunch on the Go can handle 12.5 orders per hour on average.
Comparing these numbers, we can see that Lunch on the Go has the absolute advantage as its employees can handle the highest average number of lunch orders per hour compared to the other food trucks.
Learn more about Food Truck here
https://brainly.com/question/27744724
#SPJ12
Answer:
It's D, Lunch on the go.
Explanation:
Edge 2020.
how do you wrrite the word pneumonoultramicroscopicsilicovolcanoconiosi aand what does it mean?
Answer:
Pneumonoultramicroscopicsilicovolcanoconiosis
Explanation:
Pneumonoultramicroscopicsilicovolcanoconiosis is a phrase used to describe a lung condition produced by inhaling silica dust, as in I had difficulty breathing and my doctor diagnosed me with pneumonoultramicroscopicsilicovolcanoconiosis.
business math 1. you've been told that a potential investor wants at least 22% of the business plan to focus on market analysis. if your business plan is 18 pages, how many pages should be devoted to market analysis
Market analysis is an essential component of any business plan. This section needs to demonstrate your knowledge of your specific market as well as the market's financial attractiveness.
Potential investor = 22%
Business plan = 18
Market analysis = 18 x 22/100
= 3.96
A market analysis evaluates a market both quantitatively and qualitatively. It examines the market's size in terms of both volume and value, the different consumer segments and purchasing patterns, the level of competition, and the overall business climate in terms of entry barriers and regulations.
Depending on the kind of company you are marketing to investors, your strategy for determining the market's size will vary. If your company plan is for a small store or restaurant, you must adopt a local strategy and attempt to evaluate the market in the area. If you are preparing a business plan for a chain of restaurants, you must analyse the market on a national scale.
To know more Market analysis visit:
https://brainly.com/question/28347366
#SPJ1
*You have a company's balance sheet, its income statement, and its statement of cash flows. Which would you refer to if you wanted to know if a company made or lost money last year? If you wanted to find out how much debt the firm had used to finance its assets? If you wanted to know why its cash balance had changed over the past year?
When a company is identified as being in the intermediate stage of social media, it
A.) Is focusing on monitoring the social web to create a social media plan.
B.) Is in a position to use management systems to create engaged communities on various platforms.
C.)Has an average annual budget of $1.364 million for social media marketing.
D.)Has a clearly defined social media policy.
E.) Is ready to invest in social customer relations management (SCRM).
When a company is identified as being in the intermediate stage of social media, it is in a position to use management systems to create engaged communities on various platforms.
Management systems refer to a set of processes, procedures, policies, and guidelines that organizations use to achieve their goals and objectives. These systems are designed to ensure that resources, including people, processes, and technology, are effectively managed to enhance efficiency and productivity.
This means the company has already established a social media presence, has a basic understanding of the social media landscape, and has started to engage with its audience. At this stage, the focus is on building a community, increasing engagement, and creating a consistent brand voice across all social media channels. The company may also be using social media management tools to streamline its social media efforts and analyze its social media metrics.
To learn more about management systems, click here:
https://brainly.com/question/30553207
#SPJ11
According to the video, what tasks do Librarians perform? Check all that apply.
A. supervising staff
B. writing stories
C. coordinating storytelling sessions
D. speaking at public events
E. dealing with angry customers
F. classifying materials
Answer: C and F
Explanation:
Answer:
Its I believe a,c, and f
Explanation:
your welcome
A company has the following: Cash balance per books, December 31, $82,600. Note receivable of $1,750 plus $250 of interest collected, $2,000. Outstanding checks, $4,900. Deposits in transit, $2,500. Bank service charges, $50. NSF check, $650. The company erroneously recorded a $1,000 cash payment on its books as a $100 cash payment. Also, the bank erroneously deducted $300 from the company’s checking account. The bank should have taken the money from a different customer’s account. How much is the adjusted cash balance per books on December 31?
Answer:
$83,000
Explanation:
Calculation to determine How much is the adjusted cash balance per books on December 31?
Balance per books on Dec. 31, $82,600
Add Note collected by the bank including interest $2,000
Less Bank service charge ($50)
Less NSF check ($650)
Less Book error ($900)
($1000-100)
Adjusted cash balance per books $83,000
Therefore the adjusted cash balance per books on December 31 is $83,000
The oncology nurse is learning to care for dying clients. Which ideals should guide the nurse in facilitating a good death for these clients? Select all that apply.
a) A good death is one that allows a person to die on his family's terms.
b) The care of the dying client should be guided by the values and preferences of the nurse.
c) The characteristics of a good death vary for each client.
d) Care for dying clients should focus on pharmacologic relief of pain.
e) Independence and dignity are central issues for many dying clients.
The ideals that should guide the nurse in facilitating a good death for the clients are as follows:Answer: c) The characteristics of a good death vary for each client.
The oncology nurse is learning to care for dying clients. Which ideals should guide the nurse in facilitating a good death for these clients. d) Care for dying clients should focus on pharmacologic relief of pain. e) Independence and dignity are central issues for many dying clients.
Explanation:It is crucial for an oncology nurse to recognize that the meaning of "good death" varies from person to person. It is not enough for a nurse to implement a single protocol to treat all dying clients with dignity and respect; instead, the nurse must listen to the dying client's values and wishes. Effective palliative care considers the dying client's unique needs and preferences.
It is important for the nurse to understand that not all clients will require pharmacologic intervention to relieve pain. To support clients in achieving their independence, the nurse must encourage and enable the dying client to make as many decisions about their care as possible.
To know more about clients visit:
https://brainly.com/question/29051195
#SPJ11
the conversion strategy becomes more important as interest rates increase. group startstrue or false true, unselected false, unselected
The given statement "The conversion strategy becomes more important as interest rates increase" is true. This is because it encourages the investors.
What is Conversion strategy?Conversion strategy is a technique or strategy that companies use to encourage their investors to exchange their investment from bonds or preferred stocks to common stocks. In simple terms, conversion strategy is a strategy that enables bondholders to convert their bonds into common stocks of the company.
Therefore, when interest rates increase, investors might not be interested in holding bonds or preferred stocks, and this is when conversion strategy becomes important. Companies offer conversion strategies to investors to attract them towards buying their common stocks instead of bonds or preferred stocks. Thus, the given statement is true.
Learn more about Conversion strategy here:
https://brainly.com/question/27387102
#SPJ11