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meriva
3 years ago
9

10) Financial intermediaries can substantially reduce transaction costs per dollar of transactions

Business
1 answer:
goblinko [34]3 years ago
7 0

Answer: D) economies of scale.

Explanation:

Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.

Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.

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Determine which measure of inflation should be used in each of the given scenarios. a. You're a buyer at an auto factory, and yo
Lostsunrise [7]

Answer:

a. PPI or Producer Price Index because it measures the input used for production.

b. CPI or Consumer Price Index because it measures the cost of common household purchases.

Explanation:

Inflation is general rise in the price level. There are various measures of inflation such as CPI, RPI, CPIX, CPI-CT and core inflation. This inflation measure selection is based on the scenarios by which criteria is made for selection. The businessmen will measure inflation with a different method as compared to a common man.

a. A factory owner will measure the inflation based on PPI. Producer price index measures the change in price of goods sold by manufacturer.

b. A teacher union will measure the inflation as CPI. Consumer price index is the best measure of inflation for a consumer.

8 0
3 years ago
Fast Wheels, Inc. expects to pay an annual dividend of $0.72 next year. Dividends have been growing at a compound annual rate of
brilliants [131]

Answer:

$9.00

Explanation:

PO == $0.72 / (0.14 - 0.06) = $9.00

The reason for this rate of return and the compound rate of rate have to be divide through by 100% for a proper calculation to get the actual value of a share of stock.

A dividend is a share of profits and retained earnings that a firm pays out to its shareholders. When a company generates a profit and accumulates retained earnings, those earning can be either reinvested in the business or paid out to shareholders as dividend.

4 0
3 years ago
How does voluntary exchange help set prices in a market economy?​
SVETLANKA909090 [29]

Answer:

How does voluntary exchange help set prices in a market economy?​

Voluntary exchange enables fluctuation in prices and makes it to be vary in the market system, this uncontrolled prices enables customers to buy same goods at different prices because each supplier sells at any convenient prices that suits them not adding both variable cost and fixed cost to determine the price.

Explanation:

3 0
4 years ago
Consider the market for minivans (Some would describe a minivan as a family car). Looking at the two statements, which one is tr
Allushta [10]

Answer:

both statements are false

Explanation:

if People decide to have fewer children, there would be less demand for minivans as a result the demand curve would shift to the left.

also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.

A leftward shift signifies a fall in demand while a rightward shift signals a rise in demand

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

7 0
4 years ago
When there are a large number of relatively small account balances, negative confirmation of accounts receivable is feasible if
sveta [45]

Answer:

The correct option is D

Explanation:

When there are huge number of the small account balances, then the negative confirmation of the accounts receivable is practical or feasible which is issued by an auditor to the customers of client company and if the combination of the control as well as the inherent risk is low and the individuals who receives the confirmation requests which provide them sufficient consideration.

5 0
3 years ago
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