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3 years ago

What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets

Business

1 answer:

Bas_tet [7]3 years ago

4 0

Answer:

See explanation

Explanation:

The impact of the near failure of Bear Stearns resulted in financial crisis which shook global economy. This financial crisis almost brougt recession to Nations. Lehman Brothers on the other hand, crashed the stock market which caused problems on the S$P index.

The Treasury Department pumped more money into the economy in attempt to help Bear and Stearns but the two banks still failed leading to loss of money.

The failure of Lehman Brothers is termed the largest Bankruptcy in the history of U.S. The bankruptcy affected financial markets greatly.

Money Markets can be defined as the market that provides short term funds to the players. it is not regulated like the capital markets but it is also a component of the economy.

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Who is your favorite character in the walking dead? mine is rick

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Which of the following is true? Question 8 options: The convenience yield is always positive or zero. The convenience yield is a

ss7ja [257]

Answer:

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3 years ago

An authorization to start a business issued by the local government is a _____. fringe benefit zoning law business license liabi

Rina8888 [55]

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3 years ago

A country produces only bananas and robots. If it produced only bananas with all its available resources, it could make 60 milli

Levart [38]

It should be noted that in the PPC, the downward sloping line 'ab' is the production possibility curve.

<h3>How to illustrate the information?</h3>

In the diagram, since point 'A' falls on the PPC itself, it represents the full employment of resources. Point 'A' represents the combination of 30 million bananas and 10 million robots.

Opportunity cost producing a robot = Total bananas possible / Total robots possible

Opportunity cost producing a robot =60/20

Opportunity cost producing a robot = 3 bananas

The area outside PPC represents the unattainable combinations of two goods.

During the recession, the resources are inefficiently used and the production combination is represented by point 'B' which falls below PPC When the production technology improves only for one good and not for the other, the PPC rotates

Marginal opportunity cost of a robot = 80 million bananas / 10 million robots

The marginal opportunity cost of a robot = 8 bananas

Opportunity cost of 2 million robots = 8 bananas × 2 million

The opportunity cost of 2 million robots will be 16 million bananas.

Learn more about PPC on:

brainly.com/question/2617319

#SPJ1

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