Answer:
there is no deadweight loss.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.
Answer:
6.14%
Explanation:
The offered investment has a nominal rate (N) of 6% compounded quarterly (n=4 times a year). The effective rate of return (R) is obtained by:
The effective rate of return that you will earn from this investment is 6.14%.
*Note that the amount invested is not relevant when determining the effective rate of return, which means that the rate would be the same for any amount.
Answer:
c.reported at fair value on the balance sheet and as unrealized gains or losses on the income statement
Explanation:
The trading securities focuses on the securities which are traded to gain the profit through selling the securities which are based on the market values
So
any profit or losses could be come under the income statement
whereas
The fair values are to be reported on the balance sheet
hence, the correct option is c.
The correct answers are A) helped to reduce loans to private banks and C) created a new type of paper currency.
The Federal Reserve Act helped to reduce loans to private banks and created a new type of paper currency.
With the passing of the Federal Reserve Act of December 23, 1919, signed by President Woodrow Wilson, the government initiated with the Federal Reserve system that acted as the Central Bank of the United States. It had twelve regional banks that supplied all the money for the country. Its headquarters are located in Washington D.C., and the commonly known as the Fed supervises the financial and economic situation in the country, the monetary supply, and tries to control inflation.
