Answer:
D. Capital market instruments include both long-term debt and common stocks.
Explanation:
Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct.
Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money.
Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction.
Option C is wrong, as well. NYSE has a physical location where trading activities happen.
So option D is the only correct statement because capital market instruments are long-term debt and common stocks.
Answer:
d) Avoidable costs are also known as sunk costs.
Explanation:
The avoidable cost are those cost that can be ignored while making decision. The sunk costs are all those cost which already been incurred and it will not be effected by the change in decision. The sunk costs are already been expensed so, whatever decision you make it will not be changed.
If the price of lattes, a normal good you enjoy, falls "<span>both the income and substitution effects lead you to buy more lattes. "
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The income effect expresses the effect of expanded acquiring power on utilization, while the substitution impact depicts how utilization is affected by changing relative wage and costs. Distinctive products and ventures encounter these progressions in various ways.
Answer:
b) Direct materials price.
Explanation:
The purchasing manager would be associated to the quantity purchased and for the purchase price it is bought.
Therefore, labor variances are not his consideration.
And also in material variances we know, direct material quantity variance is calculated for the quantity <em>used</em> in production and not the quantity purchased, although the later is dealt by purchase manager the former relates to production manager.
Purchase manager is responsible and concentrates on the price at which the direct material is bought.
Thus, the correct option is
b) Direct materials price.