The purpose of money is that it is a store of value, unit of account and a medium of exchange.
Money is a store of value because it holds a value to pay for something else. Money is used to purchase items you want and depending on how much money you have it creates a value that is enough to purchase something else. Money is also a unit of account because it holds a numeric value that is important to the holder and the organizations so that people can spend their items on things they want/need. Money is also a medium of exchange because it is used as an exchange for a good or service that the consumer wants.
Answer: c. rightward shift of a demand curve.
Explanation:
When there is movement along the demand curve, this is due to a change in the price of the good.
However, an increase in demand is noted by a rightward shift in the Demand curve. This is to signify that the demand has changed even though the price had remained the same. This shift is meant to signify that something else apart from price has caused an increase in demand such as an increase in income. After the shift, the price will have to change to reflect a new Equilibrium which will be the new intersection point with the Supply Curve.
I have attached a graph showing what happens when Quantity Demand increases.
Answer:
D) Beta .98 expected return .107
Explanation:
In CAPM (Capital Asset Pricing Model), expected return = risk-free rate + Beta * market risk premium = 3.4% + Beta * 7.4%
We try every choice consecutively
A) Beta .87 expected return .096
⇒ expected return = 3.4% + 0.87 * 7.4% = 0.098
A is wrong
B) Beta 1.09 expected return .102
⇒ expected return = 3.4% + 1.09 * 7.4% = 0.1147
B is wrong
C) Beta 1.62 expected return .146
⇒ expected return = 3.4% + 1.62 * 7.4% = 0.154
C is wrong
D) Beta .98 expected return .107
⇒ expected return = 3.4% + 0.98 * 7.4% = 0.107
D is TRUE
E) Beta 1.16 expected return .139
⇒ expected return = 3.4% + 1.16* 7.4% = 0.12
E is wrong
Answer:
The "diamond-water" paradox.
Explanation:
Adam Smith in his book <em>The wealth of nations</em> posted a question consisting the comparison between the price of diamond and water.
His idea was that why the price of diamond is so high as it has no importance in human life, and why the price of water is so low when it is highly significant for human life. One cannot die, if he doesn't have a diamond under his pillow although he will die if water is not given to him for days.
Answer:
A. $0
B. $112
C. Investor A 14.3% gain
Investor B 18.5%
Explanation:
a) Based on the information given interest cost for investor A will be Zero
b) Calculation for What is the interestcost for investor B
Cost of interest =(100 shares*$35)×(100*%-69%)×0.08
Cost of interest = 3,500 x 0.40 x 0.08
Cost of interest =$112
c) Calculation for what percentage returndoes each investor earn
Investor A: 4,000 - 3,500 = 500/3,500
= 0.1428 =14.3% gain
Investor B: $500 gain - $112 interest
= $388/2,100 = 0.1848 =18.5%