Answer: Option (a) is correct.
Explanation:
Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.
The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.
If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.
So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.
This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.
Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.
Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.
<span>Buying a bond does not constitute ownership in a company. In the event that Touchtech, or any firm that issues a bond, runs into financial difficulty, bondholders are the first to be paid. Sean, as a bondholder, would be among the first paid.</span>
1 MONTH (SO far) $125.26 + $987.25 - ( rate: 1x $15.00) - $43.22 - $57.26 + $100.00
= C :
$1097.03
Answer is A
The appropriate response is true. Stock market is the total of purchasers and dealers (a free system of financial exchanges, not a physical office or discrete substance) of stocks (likewise called offers), which speak to proprietorship guarantees on organizations.
Answer:
you would need 68000 of the coupon bonds to issue to raise the $68 million.
Explanation:
price of the coupon bond = $1000
number of coupon bond = $68 million/1000
= 68000
Therefore, you would need 68000 of the coupon bonds to issue to raise the $68 million.
