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2 years ago

contains funds you have in your bank checking account as travelers' checks and the currency in circulation in the economy.

1 answer:

3 0

<u> M1 </u> contains funds you have in your bank checking account as travelers' checks and the currency in circulation in the economy.

<h3><u>What exactly is M1?</u></h3>

Currency, demand deposits, and other liquid deposits, such as savings accounts, make up M1, which is the money supply. Due to the fact that M1 contains assets and currencies that are either already cash or can be swiftly changed into cash, it is the most liquid element of the money supply. M2 and M3's "near money" and "near, near money," which fall under these categories, cannot, however, be changed to money as rapidly.

<u>How to Determine M1?</u>

The coins and notes of the Federal Reserve that are in circulation outside of the vaults of depository institutions and the Federal Reserve Banks make up the M1 money supply, also known as bills or paper money. The mainstay of a country's monetary system is paper money.

M1 also comprises demand deposits, other checkable deposits (OCDs), traveler's checks (issued by non-banks), NOW accounts at depository institutions, and credit union share draft accounts.

M1 covers securities that are easily redeemable and in circulation for the majority of central banks. However, the term varies a little bit depending on where you are.

Learn more about M1 with the help of the given link:

brainly.com/question/15584887

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2 years ago

________ occurs when price- and quantity-fixing agreements among producers are implicit. A) Tacit collusion B) A Cournot model C

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Answer:

The correct to answer to the following question is option A) Tacit collusion .

Explanation:

Tacit collusion ( which is also know as price leadership ) can be defined as the situation where a dominant firm in the market will set a price and other firms in the market would accept those changes in the price. Here the dominant firm usually sets high price, such that the firms who are least cost efficient would also be able to earn some return.

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3 years ago

A market where prices reflect all available public information is _____.

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Answer:

The correct answer is:

b.) semistrong form efficient

Explanation:

In financial economics, the efficient-market hypothesis is a hypothesis that states that asset prices reflect all available information. The concept theorizes that the market is generally efficient, because it holds that a market cannot be beaten, because it incorporates all the important determination information into current share prices.

There are three versions of an efficient market hypothesis:

1. strong form efficient: This version states that all information - both information available to the public, and those not publicly known - is completely accounted for in stock prices, and there is no information type that can give an investor an advantage in the stock market.

2. semi-strong efficient: This version believes that only information readily available to the public can be used to factor prices and that changes in prices to new equilibrium levels are a product of this public information.

3. weak form efficient: This version assumes that current stock prices reflect all security market information. It contends that past price and volume data have no relationship to the direction or level of security prices. It concludes that excess returns cannot be achieved using technical analysis.

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3 years ago

Lukow Products is investigating the purchase of a piece of automated equipment that will save $400,000 each year in direct labor

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Answer:

The intangible benefits will be required to have a value of $ 100 000.

Explanation:

To calculate the return on the equipment (ROI) we consider the profit/saving it contributes over the cost of the equipment.

Currently we have a save to costs of $400000 (increases revenue) and a cost of $2500000.

Our current return on the asset is 400/2500 * 100 which equates to 16%.

Management requires a rate of return of 20% thus the intangible benefits need to make up 4%

we can determine the dollar value by determining 20% of the cost of equipment. 2500 * 20% = 500 ( using thousands, $ ' 000)

500 - 400 = 100.

The value of the intangible assets will be required to be $ 100 000.

If we add this into the ROI formula we now have 500 / 2500 * 100 = 20%.

Thus management's requirement is now met

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3 years ago

Which of the following statements is true?

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