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3 years ago

If the Federal Reserve were to change from an expansionary to a contractionary monetary

Business

1 answer:

zzz [600]3 years ago

6 0

Answer:

B) systematic risk

Explanation:

Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.

Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.

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Select the true statement or statements regarding the loanable funds market. Foreign entities cannot save in the United States.

Shalnov [3]

Solution:

The following are the correct and incorrect options

Correct option: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.

Correct option: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).

Other options are not correct:

Incorrect option: Savings means personal savings, which are not yet kept into a bank.

Incorrect option: such purchases are investments but not savings.

3 0

3 years ago

According to the semistrong form of the efficient markets hypothesis, ____________.A. stock prices do not rapidly adjust to new

solmaris [256]

Answer:

The correct answer is option B.

Explanation:

According to the efficient market hypothesis, when the market is in semi-strong form the future changes in the stock prices cannot be predicted by the publicly available information.

The stock prices quickly adjust to all the publicly available information. In this situation, an investor can earn above-average returns if he possesses private information which is not available to all.

3 0

3 years ago

The use of the money supply to influence the economy is: a. initiated through actions of Congress. b. called countercyclical pol

iogann1982 [59]

Answer:

The correct answer is (E)

Explanation:

There are two major policies which can directly affect the economy of a country; fiscal policy and monetary policy. Monetary policy is generally controlled by federal or state bank which is used to increase or decrease the overall money supply in the economy. Some important tools of monetary policy are interest rate, discount rate and open market operations etc. The monetary policy is often used to target inflation

5 0

3 years ago

What is divisional structure in organization?

dedylja [7]

Explanation:

The divisional structure is a type of organizational structure that groups each organizational function into a division. ... Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments)

5 0

3 years ago

Read 2 more answers

Who has the final say in matters of public policy about health actions? A. Administrator of the facility B. Families C. Public h

Harrizon [31]

Who has the final say in matters of public policy about health actions? Public health officer. The public health officer is in charge of making sure all health regulations and potential threats are taken care of. It is important to maintain public health and prevent diseases from happening.

4 0

3 years ago