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3 years ago

What are the function of an economic system

Business

1 answer:

densk [106]3 years ago

3 0

Answer:

The four main functions of an economic system are,

a). Production: This is concerned with hat goods and services will be produced in the economy.

b). Allocation: This is concerned with how these goods will be produced, that is using labor intensive technology or capital incentive technology.

c). Distribution: This is concerned with whom the goods are produced, that is how the share of the economic pie will be distributed.

d). Regeneration: This function is concerned with allocating resources between consumption for present use and investment for future use.

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Sofia has saved $10,000. She wants to be sure that she is earning interest on her money and can add to her savings. She also wan

guapka [62]

A money market account is the type of account is most suitable for Sofia’s needs.

A money market account earns interest on the money that is deposited at a higher rate than a normal savings account. Even though this is not a common savings account, the account holder is able to write checks from the account if the money needs to be accessed. A money market account is a 'best of both worlds' account because the holder can benefit like a savings and checking account would allow (with some restrictions).

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3 years ago

Read 2 more answers

Why do you think people invest their money in options other than those with the highest returns (highest % interest)?

atroni [7]

Answer:Probably the highest return rates usually crash so they invest in smaller options with lower return rates. Explanation:

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3 years ago

"Lizard National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 millio

Bingel [31]

Answer: $500,000

Explanation:

An Interest Rate Cap is a Derivative Financial Instrument that works by paying the buyer for every year that the interest rate ceiling is exceeded.

Using the scenario above this is how it's works,

There is an Interest Rate Ceiling of 11%.

Any year that index which is this case is the London Interbank Official Rate (LIBOR) exceeds the 11%, the seller will pay the buyer the difference between the LIBOR and the Interest Rate Ceiling.

The Notional Principal is the amount on which the interest is based.

That means that in Year 1 with a LIBOR of 9 percent, the seller does not pay.

Second year LIBOR is 12 percent, the seller will pay 1% (12% - 11%)

Third year LIBOR is 13 percent, the seller will pay 2% (13% - 11%)

Lizard National Bank had to pay 2% of the notional Principal as a fee.

The amount that Lizard Receives from the seller is therefore,

= Total Received - Fees

= (1% + 2% - 2%) * 50,000,000

= 1% * 50,000,000

= $500,000

The total payments received by Lizard, including the initial fee, are $500,000.

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4 years ago

A(n) _____ organization can be best defined as one in which there is very little hierarchy; each employee is multi-talented and

zaharov [31]

The correct answer is: "organic" .
______________________________________________

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4 years ago

Which of the following statements reflects upon the difficulty companies face when requiring international suppliers to follow e

AleksAgata [21]

It seems that you have missed the necessary options for us to answer this question so I had to look for it. Anyway, here is the answer. The statement that reflects upon the difficulty <span>companies face when requiring international suppliers to follow environmental and human rights standards set by u.s. firms is this:</span> Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. Firms. Hope this helps.

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4 years ago