According to empirical research, in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.
<u>Explanation</u>
A <u>Moral hazard</u> is said to have occurred when one party (i.e insured Party) increases its exposure to risk ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party
<u>The moral hazard problem is </u><u>less </u><u> severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.</u>
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So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.
Answer:
The correct answer to the following question is option E) being locally responsive.
Explanation:
Local responsiveness can be defined as the degree to which a company must make customization in its products and method , which are necessary in order to meet the conditions in other countries. A company need to make customization in order to meet the diverse demands of the people , which arises because of the different taste and preferences, competitiveness in the market, difference in distribution model, government policies etc.
They both could be working together to find out how and when the truck driver would have fallen asleep and what could have caused him to fall asleep. Next, they could both figure out if the ammonia was in sealed containers and if not why. You could even come to the conclusion of the ammonia could have leaked from the containers and exposed the driver putting him to sleep.
The correct answer is B). True , this is true because trying to train yourself to do something is very hard , this is a fact because we all have something that distracts us believe it or not.
Planning to self improve your actions or thinking can be quite tricky due to daily habits and hobbies.
I hope this helps you.
Answer:
B) 4
Explanation:
the monetary multiplier before this newly acquired checkable deposit was 1 / required reserve ratio = 1 / 20% = 5. Since the banks decided to increase the reserve ration to 25%, then the money multiplier will decrease to 1 / 25% = 4.
The monetary multiplier shows the money creating effect of the fractional banking system. E.g. you deposit $1,000 at bank A. Bank A will lend $750 to Bill. Bill then purchases a bike from Tom and Tom deposits the $750 in bank B. Bank B will then lend $562.50 to Sarah. Sarah purchases a TV from Alex, and Alex deposits the money in bank C. Then bank C will lend $421 to Frank, and the cycle goes on.
