The answer is deregulation. It removes restrictions from laws for to allow competition among the industries and set into the market. However, based on experience, industries, and investments suffered from this set-up. The government stopped it after the mortgage crisis last 2007.
It was also found out that is is difficult to apply because of existing monopolies that can control prices in the market.
Answer:
In many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this?
The term is called:
lender of last resort.
Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this?
The term is called:
deposit insurance.
Explanation:
Central banks play important roles in the economy. They conduct the economy's monetary policy, regulate other banks, and provide various other financial services, including economic research. They stabilize the nation's currency by ensuring that unemployment is kept low and also prevent economic fluctuations.
The correct explanation is option (a), "short selling stock-index futures contracts".
<h3>What is short selling stock-index futures contracts?</h3>
When you buy a futures contract to "short sell," you are doing so with the intention of selling it later at a lower (ideally) price. Unlike the stock market, there is no requirement for financing.
The working of short selling stock-index future contracts is-
- The concept is to obtain anything you don't already own on loan, sell it, and then return it.
- Even though you will now receive the funds, you still owe the money you borrowed.
- You eventually have to return it.
- You make money if you can later purchase it for a lower price.
The future contract can be shorted by-
- By locking in a price through the directional hedge known as shorting the basis, any asset price changes are effectively eliminated until the futures contract expires.
- When shorting the basis, a long hedger prefers a narrowing in the basis.
To know more about the futures in contract, here
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Answer:
Buy 20 bottles of soda, everyone will get 2 and its even
Explanation:
