Certificates of deposit exist as funds that the bank keeps on hand that exists not loaned out or invested in bonds.
<h3>What are certificates of deposits?</h3>
Unsecured negotiable promissory notes, or certificates of deposit (CDs), are frequently issued by commercial banks and other financial organizations.
A certificate of deposit (CD) is a type of savings account where the issuing bank pays interest in exchange for holding a specified sum of money for a predetermined length of time, such as six months, a year, or five years. You will receive the amount you initially invested plus any interest when you cash in or redeem your CD.
Bonds and certificates of deposit (CDs) are comparable but not the same. Both of these securities are fixed-income investments that the holder keeps until the due dates. Investors invest money in bonds or CDs for a predetermined amount of time, and when that time expires, they receive their money back.
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He's business is going for a healthy more eco-friendly restaurant
Answer:
production possibilities frontier is like a set of choices
Answer:
$236.25
Explanation:
Given that,
Recently dividend paid, D0 = $6.75
Growth rate of dividend, g = 5 percent per year
Required rate of return, rr = 8 percent
Therefore, the stock price is calculated as follows:
= [D0 × (1 + g)] ÷ (rr - g)
= [6.75 × (1+5%)] ÷ (8% - 5%)
= $236.25
Hence, the maximum you would be willing to pay for a share of its common stock if your required rate of return is 8 percent is $236.25.
Answer:
D
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Characteristics of natural monopolies
- they have a large fixed cost
- The firms have a low marginal cost
- They occur naturally through the free market. It does not occur by government regulation or any other force
