The security market is filled with many different types of marketable securities like shares debentures and bonds which can be traded via different trading platforms available in the securities market.
<h3>What are bonds ?</h3>
- Bonds are the securities in the documented form which can be traded and exchanged containing a maturity date and the principle amount to be paid at maturity.
- These are instruments of fixed income because the bearer of bonds can be said as a creditor to the issuer and will be paid the fixed amount as per the face value of the bond.
- Bonds can be issued by government , municipality or a company.
The par value is a value which is equal to the face value of an instrument and which does not contain any element of premium or discount.
Therefore the bonds from U.S. Treasury, from Alachua County, and from the city of Northfield will be considered to be purchased on the par value of $1,000 from each of the following irrespective of the fact that what price they are being sold in the market.
<h3>Calculation</h3>
Hence the total cost for Lana if she purchase 1 bond from each of the following at a par value of $1,000 will be $3,000 and OPTION A is correct as per the question.
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To pay a higher interest rate, a lower relative stock price, and a higher cost of funds than its competitors
Answer: B. 1/R, where R represents the reserve ratio for all banks in the economy.
Explanation:
The Money Multiplier is the money that Banks generate given a certain RESERVE REQUIREMENT/RATIO.
A Reserve Requirement is money that the Central Bank requires that Banks do not loan out and instead keep in reserve.
For example, if the reserve rate is 10% and a bank has $10 they can only loan out $9.
Assuming they loan out $9 then they created $19 in the economy because their customers still own the original $10 but now they have also given loans of $9. The people who take the loans then deposit it in another bank. That bank would keep $0.90 in reserve and loan out $8.10 meaning that $27.10 now exists in the economy.
The process goes on and on until it gets to $100.
A simpler way to get to the final figure is to divide 1 by the reserve requirement = 1/r which is the money multiplier.
Using the above example, that would be 1/0.1 which is 10.
Multiplying this 10 by the initial deposit of $10 will give you that same $100.
1 contract law
2 Something of value must be exchanged between the parties.
3 civil law
Why is the law important?
Laws are created for protect our general safety, and ensure our rights as citizens against abuses by other people, by organization's, and by the government itself. We have laws for help provide to our general safety.
How many kinds of Laws?
Natural or Moral Laws: Natural laws are the belief that certain laws of morality are inherent by human nature, reason, or religious belief.
- Scientific Laws
- Imperative Laws
- Common Laws
- Criminal Laws
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The desire for a produsct class rather than for a specifik brand is called selective demand
