Answer: B. No, this is not part of the Fed's dual mandate of price stability and high employment.
Explanation:
For any economy to grow there needs to be price stability in the economy as it helps investors plan their future spending amongst other things. This is why the Fed has the mandate to keep prices stable.
The Fed however, does not have to maintain the stability of prices in the stock market which can be a very volatile market where the volatility is one of the very ways to make gains.
Answer:
Defensive Portfolio
Explanation:
Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.
Many defensive portfolio companies offer dividends with the effect of reducing capital losses.
Answer:
When interest rate rises, the quantity of money demanded reduces
Explanation:
As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.
Answer:
Sustainability is how long a business can last or strive in the market while going about their responsibilities. Corporate social responsibility is doing business in ways that are beneficial and not harmful to the society or environment.
An organization cannot be good at both if they cannot balance their responsibilities toward their workers, society or government.
A company can be involved in the production of good products at low cost and yet they are involved in wasting natural resources and emission of carbon. Such a company is not environmental friendly and is not socially responsible.
CSR and sustainability go together these days. The relationship here is that if a company is able to benefit the society and environment, then it would be able to get increased output, a positive image and quite a good number of customer base would want to patronize them for being socially responsible.
The difference between them is that CSR takes the welfare of all parties into consideration, the society and environment inclusive. While sustainability does not consider all factors.
Answer:
The $2,000 Sue's loss is disallowed due to her tax basis or at-risk amount
Explanation:
Since we have to compute the disallowed sue's loss based on tax or at-risk amount, so we use these amounts only in the computation part.
The computation is shown below:
= Tax basis - At-risk amount
= $9,000 - $7,000
= $2,000
Hence, the other cost like invested amount, qualified noncourse debt, loss amount are not considered. So, it is ignored