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Vesnalui [34]
3 years ago
9

If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial

assets _____ interest rates to find willing buyers. Sales of financial assets do not depend on the rate offered. must offer higher can offer 2% can offer lower
Business
1 answer:
expeople1 [14]3 years ago
4 0

Answer: must offer higher

Explanation:

The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.

This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.

In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.

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A company has $10,710 available per month for advertising. Newspaper ads cost $180 each and can't run more than 22 times per mon
True [87]

Answer:

22 radio advertisements will be used.

Explanation:

<u>Note</u>: A similar complete question is as follow as the question provided is incomplete <em>"A company has $11,970 available per month for advertising. Newspaper ads cost $110 each and can't run more than 25 times per month. Radio ads cost $410 each and can't run more than 32 times per month at this price. Each newspaper ad reaches 5950 potential customers, and each radio ad reaches 7100 potential customers. The company wants to maximize the number of ad exposures to potential customers. Use n n for number of Newspaper advertisements and r r for number of Radio advertisements . Maximize P"</em>

Number of potential customers that can be reached due to each dollar spent in newspaper advertising =  5950 / 110 = 54.09

Number of potential customers that can be reached due to each dollar spent in Radio advertisements = 7100 / 410 = 17.32.

As the number of potential customers reached by each dollar spent is more from the newspaper advertising, we will use all the newspaper advertising opportunities before going for the radio advertisements. So, we will choose to have 25 newspaper advertisements in the month.

The cost of 25 newspaper advertisements = 25*110  = $2750.

Amount left = $11970 - $2750 = $9220.

Number of radio advertisements possible in this budget = 9220 / 410 = 22.48

Hence, 22 radio advertisements will be used.

3 0
2 years ago
Which situation creates scarcity in an economy?
scZoUnD [109]

Answer:

C. Citizens have more wants than they can fulfill with their available resources.

Explanation:

Correct for APEX

4 0
3 years ago
In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most r
Burka [1]

Answer:

Ranking projects from least risky to most risky:

1. Repair to old machinery.

2. Addition to normal product line.

3. Completely new market in United States.

4. Completely new market in South America.

Explanation:

As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas.  This implies that increasing uncertainty induces more risk.

6 0
2 years ago
What does surplus mean in Economics?
jenyasd209 [6]
A surplus<span> is used to describe many </span>excess<span> assets including income, profits, capital and goods. A </span>surplus<span> often occurs in a budget, when expenses are less than the income taken in or in inventory when fewer supplies are used than were retained. </span>Economic surplus<span> is related to supply and demand</span>
6 0
3 years ago
When a tax is levied on a good, the buyers and sellers of the good share the burden, A. provided the tax is levied on the seller
Morgarella [4.7K]

Answer:

Here all of these options are wrong , the correct answer is regardless of how the tax is levied the burden of tax would be shared by both the seller and buyer.

Explanation:

Tax can be said as primary source of income for the government. When a tax is levied on the goods , the burden of that would have to be bear by both buyer and seller , irrelevant of how that levied . If the taxes are high then the demand by buyer would be less and seller would receive low price because less people would buy and n the case where taxes are low demand would be high and seller would receive high prices ,in both cases tax would be levied on both seller and buyer and how much it would be depends upon the elasticity of demand and supply. So all the statements given here are false or invalid.

6 0
2 years ago
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