Answer: Option (2)
Explanation:
Paid in capital is referred to as or known as amount of the capital which is paid in by the investors during the preferred or common stock issuance, including par value of shares in addition to the amount in excess of the par value. The paid in capital tends to represent funds which are raised by organization through selling of equity.
Market failure occurs when a free market is unable to A) distribute resources efficiently.
Hello, yes it's actually common for people to give up their home to avoid further payment only if their lender agrees and allows that to happen. But of course, the remaining balance (the difference of the house value and what's left of the mortgage) must be paid. Walking away from an underwater mortgage can seriously affect that person's financial future and by extent his/her relationship with the community. His/Her credit score will go down with this, it may be difficult for him/her to qualify for another mortgage in the future. Another reason is that - in most states, it is completely legal for lenders to go after the difference (deficiency) because technically they own that and have rights to it.
I’m pro choice but respect everyone’s opinion:)
Answer:
2. False
Explanation:
The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.
In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.
