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gladu [14]
3 years ago
12

What are the two views on why asset prices fluctuate so much that they lead to financial crises and bank​ failures?

Business
1 answer:
tester [92]3 years ago
6 0

In one view, the asset prices are objectively based on fluctuating principles, whilst in the certain, psychological factors and prejudices play an important role.

Explanation:

As the rate of interest increases, the price of the investments declines because the yield on risk-free investing can sometimes be greater to buyers. On the other hand, the price of assets is rising as interest rates are falling.

This is usually the interest rate owed by small investors on an approved FDIC portfolio, checking account, term deposit acct or mutual fund of the monetary sector. This is now the so-called US "risk-free" limit for bigger creditors, companies and individuals. Bills for the Treasury.

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The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
Ratling [72]

Answer: 2,080,000 shares

Explanation:

The question states that 2,080,000 shares were issued at a price of $15 per share so this will be the number of shares issued.

Shares issued are those shares that were actually sold by the company from the number of Authorized shares and quite often they will be less than the number of Authorized shares allowed.

5 0
3 years ago
An investor enters into a short oil futures contract when the futures price is $15.5 per barrel. The contract size of 100 barrel
Nikolay [14]

Answer:

$150

Explanation:

Calculation to determine How much does the investor gain or lose if the oil price at the end of the contract equals $14.0

Using this formula

Gain or Loss =(Futures price- Ending contract)*Contract size

Let plug in the formula

Gain or Loss=$15.5 per barrel- $14.0* 100 barrels

Gain or Loss=$1.5*100

Gain or Loss=$150

Therefore How much does the investor gain or lose if the oil price at the end of the contract equals $14.0 will be $150

3 0
3 years ago
For each of the following pairs of firms, indicate which firm would be more likely to engage in advertising. Pairs of Firms More
8090 [49]

Answer:

a family-owned restaurant

a manufacturer of cars

A company that invented a very comfortable razor 

Explanation:

A family owned resturant is an example of a monpolistically competitive firm. A monpolistically competitive firm is characterised by many firms selling differentiated products. Advertising is one of the ways to attract customers to the restaurant.

A family owned farm is an example of a perfectly competitive firm. A perfectly competitive firm is characterised by many firms selling homogenous products. Thus, it won't be so necessary for a farm to advertise since its product is homogenous.

A car manufacturer exists in a monopolistic market. A monpolistically competitive firm is characterised by many firms selling differentiated products. Advertising is one of the ways to attract customers to purchase cars.

Forklifts aren't so differentiated. Therefore, there would be little need to advertise.

A manufacturer of a very comfortable razor should advertise his product to inform and attract customers. The manufacturer of a uncomfortable razor has no need to advertise.

I hope my answer helps you.

5 0
3 years ago
WILL GIVE BRAINLEIST !!
4vir4ik [10]

Answer:

A student neglects to do homework while chatting with friends.

Explanation:

5 0
3 years ago
Read 2 more answers
In which countries do people prefer discussing business during meals?​
Masteriza [31]

Answer:

china

Explanation:

if your traveling to china on business do not discuss business during meals .

6 0
4 years ago
Read 2 more answers
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