A mutual funds is the instrument that may not be purchased on margin but can be used as collateral for a margin loan after being held for 30 days.
<h3>What is purchased on margin?</h3>
This generally involves the act of getting a loan from your brokerage and then, using the money from such loan to invest in more securities than you can buy with your available cash.
Through the method, an investors can amplify their returns if their investments outperform the cost of the loan itself.
In conclusion, the mutual funds can be purchased on margin. However, it may be used as collateral for a margin loan after being held for 30 days.
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Answer:
Encoding and Decoding
Explanation:
The two important parts of communication in this situation is known as Encoding and Decoding
The Encoding ensures the sender (leader) sends the message (praise in the public) in such a way, (employing certain symbols including actions, words, etc, ) that the receiver can easily decode or understand.
Through Decoding the receiver (followers) receive the message (praise in the public or punishment in the private) in such a way that he understood the meaning of the message.
Hence, in this case, the correct answer is Encoding and Decoding.
Answer:
The correct answer to the following question is option D) when there are many entrants in the market.
Explanation:
A cartel can be defined as an organization which consists of group of manufacturers or suppliers who come together to serve their own benefit, by regulating the supply of products or by manipulating the product prices. A cartel would be powerful when there are high barriers to enter are very high , which means that there would be less competition and suppliers can manipulate the supply of products ,which then would lead to increase in demand and ultimately they will set high prices, from which they will earn more profits. Therefore if the number of entrants in the market , then cartel won't be able to manipulate the supply or prices.
Answer:
a) The discount rate is the interest rate at which banks can borrow reserves from the federal reserve.
b) If the Fed were to decrease the discount rate, banks will borrow more reserves, causing an increase in lending and the money supply.
Explanation:
a) When commercial banks lack money, they request the Federal Reserve Bank (central bank), and Federal Reserve Bank charge a percentage of interest upon that loan. This percentage of interest charged is referred to as the discount rate.
The discount rate is the interest rate at which banks can borrow reserves from the federal reserve.
b) A reduction in the discount rate by the Federal Reserve will make lending easy for commercial banks because they will get a loan with lesser interest to pay, therefore they will lend out more money to the public with lesser interest rates, which will eventually increase the money supply in the economy.
Thus, If the Fed were to decrease the discount rate, banks will borrow more reserves, causing an increase in lending and the money supply.