The statement," Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run." is false.
<u>Explanation:</u>
Financial markets are important for bringing equilibrium to lonable funds and in the long run they affect the allocation efficiency of scare resources. They probably shift the scare resouces of the economy from savers to borrowers.
Financial market is an arena where trading of financial derivatives and securities occurs at lower transaction costs. The securities are namely bonds, stocks, etc.,
The role of financial markets are as follows,
- operation of modern economies
- provides the government/business entities access to capital
Answer:
im so so sorry i dont know how to do this
Explanation:
Answer:
A. Represents stock ownership in another company and sometimes pays dividends.
Answer:
c
Explanation:
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.2 x $100,000 = $20,000
Excess reserves is the difference between reserves and required reserves
Required reserves = 0.15 x 600 = 90
Excess reserves = 600 - 90 = 510
