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KIM [24]
3 years ago
8

The liquidity of the market is _____ in a purely domestic capital market. Multiple Choice unlimited limited held in reserves bas

ed upon the stock market
Business
1 answer:
MakcuM [25]3 years ago
7 0

Answer:

The answer is B. Limited

Explanation:

A market is liquid if market participants can either sell or buy securities (assets, bonds etc.) easily with low transaction costs or without significantly reducing its price.

A purely domestic capital market is not as liquid as the one that also involves foreigners because it is purely domestic and market participants wont be that much compared to if market participants also involve foreigners.

Number of market participants is a key to liquidity. The higher the number, the more liquid a market is.

You might be interested in
Primrose Yard receives 15,000 large trees each year that they process into 15,000 rough logs. Currently, Primrose sells the roug
Kazeer [188]

Answer:

c. It should process further because the reduction in the cost of the trees is irrelevant.

Explanation:

For the purpose of this Decision,

Benefit of processing further = Sales Value after processing – Sale Value before processing – Further Processing costs

Cost of acquiring trees is a sunk cost already incurred and hence is not relevant

Hence, benefit of processing = (0.80-0.20)*350 – 50

= $160

Hence, the answer is

c. It should process further because the reduction in the cost of the trees is irrelevant.

7 0
3 years ago
You purchased 1,000 shares of fund ABC for $35.00 NAV per share. You elected the dividend reinvestment plan and had all dividend
Serjik [45]

Answer:

B. - 5.71%

Explanation:

Given that

Purchase price = 1000 × 35 = 35000

Selling price = 1100 × 30 = 33000

Recall that

ROI = Net profit/total investment × 100

And that

Net profit = selling price - purchase price

= 33000 - 35000

= -2000

Therefore,

ROI = -2000/35000 × 100

= - 0.05714 × 100

= - 5.71 %

Thus, total return on investment is -5.71%

3 0
3 years ago
2. "A company's net income appears directly on the income statement and the owner's equity statement, and it is included indirec
tamaranim1 [39]

Answer:

Yes, I do agree with the statement

Explanation:

The statement which is stating that the company net income  as well as the statement of the owner's equity both are included or shown indirectly in the company balance sheet . As balance sheet is that statement which tells the financial position or performance of the company at a specific time period.

Because the net income is the outcome of income statement and directly shown or stated in the income statement whereas owner's equity is the capital of the business which is shown in the balance sheet. Net income is already included in retained earnings which means shown indirectly in the balance sheet.

8 0
3 years ago
You sold short JCP stock at $80 per share. Your losses could be minimized by placing a __________. a. limit-sell order b. limit-
san4es73 [151]

Answer:

The correct answer is letter "D": stop-buy order.

Explanation:

A stop-buy order is an order to purchase a stock at a particular price above its current market price. By placing a stop-buy order, the investor sets the price at which he will buy the stock in advance, thus eliminating the risk of missing the price point, the opportunity to buy a stock with good returns, or covering a short position at a reasonable loss instead of allowing the negative trade balance to rise.

So, <em>setting a stop-buy order will help the trader exit the transaction at a specific price to cover losses of a short position at a reasonable risk rate.</em>

3 0
3 years ago
Johnson Co. has 1,000,000 euros as payables due in 30 days, and is certain that the euro is going to appreciate substantially ov
SCORPION-xisa [38]

Based on the fact that the Euro will appreciate, the best thing for Johnson Co. to do is to e.purchase euros forward.

<h3>What should Johnson Co. do?</h3>

The fact that the Euro is going to appreciate in value means that Johnson Co. will have to pay more in future.

They should therefore lock in a favorable Euro rate now by purchasing Euros at a forward rate.

Find out more on purchasing forward at brainly.com/question/14090802.

#SPJ12

5 0
2 years ago
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