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Radda [10]
3 years ago
6

Suppose that an individual can hold her wealth in only two forms: money and bonds. A _______________ in the bond market would th

en imply that there is a ________________ in the money market.
Business
1 answer:
mart [117]3 years ago
5 0

Answer:

A shortage in the bond market would then imply that there is a surplus in the money market.

Explanation:

The bond market refers to a financial market new long-term debt investment can be issued by participants or where long-term debt investment can be can be bought and sold.

The money market can be described as a financial market where short-term debt investments can be bought and sold.

Since it is indicated in the qustion that the individual can hold her wealth in only money and bonds, it implies that it will result in a negative relationship between the fund in the bond market and the fund in the money market. That is when there is a shortage or decrease in one, there will be a surplus in the other.

Therefore, a shortage in the bond market would then imply that there is a surplus in the money market.

You might be interested in
Economists distinguish among the immediate market period, the short run, and the long run by noting that
Greeley [361]

Based on the principle of economics, the correct answer goes thus:

Economists distinguish among the immediate market period, the short run, and the long run by noting that:

  • Elasticity of supply will increase when the number of producers selling a product decreases.

<h3>Immediate market run</h3>

Economists distinguish among the immediate market period, the short run, and the long run by noting that there will be increase in elasticity of supply.

In conclusion, we can conclude that the correct answer is the increase in elasticity of supply.

Learn more about elasticity of supply here: brainly.com/question/4467460

6 0
3 years ago
Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this de
liberstina [14]

$12500000 external equity is needed

<u>Explanation:</u>

The given data:

Production capacity to be maintained : 45%, investment = $20 million, debt level to be maintained = 35%, dividend distributing = 55%, net income = $5 million

<u>INVESTMENT IN PLANT MACHINARY </u>

= $20000000

<u>NET INCOME OF YEAR 2018</u> = $5000000

<u>RETAINED EARNNING AFTER DIVIDEND </u>

=\$ 5000000-(\$ 5000000 * 55 \%)

= $2250000

<u>DEBT FINANCING </u>

=\$ 15000000 * 35 \%

= $5250000

<u>EXTERNAL EQUITY NEEDED </u>

= TOTAL INVESTMENT - DEBT FINANCING - RETAINED EARNNINGS

=\$ 20000000-\$ 5250000-\$ 2250000

= $12500000

3 0
3 years ago
When deciding on what to wear each day, most people use the decision-making process. Please select the best answer from the choi
kykrilka [37]

Answer:

The correct answer is "True".

Explanation:

Although most of the people do not use a high-level of decision-making process (like a hard methology for that), some of them do care about all the issues related to each part of wearing. Imagine designers, stylists, supermodels, and pop singers who depend on their image and lifestyles, they all need to develop a decision-making process for what they wear. Some people have actually developed some technology tools to help and improve that, such as softwares for large closets in which the person decides what to wear based on directions given to an application in a mobile or computer.

4 0
3 years ago
Read 2 more answers
Which of the following actions would likely raise homeowner's insurance premiums? Building the home in the floodplain of a river
natita [175]
Insurance is a coverage that assesses the risk of a certain item/person. If that item/person is in good condition, your insurance will be lower because it's less likely it'll get damaged. 
This is why if you have a bad driving history, your car insurance is high (as there is a high risk). 
If you were to instal an alarm, live in a safe neighbourhood or choose not to install a swimming pool you would actually reduce your insurance.
If you have an alarm, you are less likely to have stuff stolen (safer = less risk).
Living in a safe neighbourhood is safer = less risk.
Not installing a pool means your property remains the same value (putting a pool could increase it), higher risk of someone drowning in the pool, or hurting themselves. So by not building the pool, you'll have a safer environment = less risk.

If you build your house in a floodplain, the chance of your house getting damages by a flood is very very high, so you will have to pay more as there is an increased risk.


4 0
3 years ago
Read 2 more answers
Min invested $18,000 cash in the business. Paid $7,540 cash for monthly rent expense for May. Paid $4,600 cash for this year’s i
Olenka [21]

Answer:

\left[\begin{array}{ccc}$Account&$DEBIT&$CREDIT\\$Cash&37,600&-\\$Prepaid insurance&4,600&\\$Office supplies&890&-\\$office equipment&12,900&\\$accouts payable&-&12,900\\$Capital Account&&18,000\\$drawins&3,370&\\$Sales revenue&&36,000\\$Rent expense&7,540&\\$Total&66,900&66,900\\\end{array}\right]

Explanation:

We must do ledger for each accounts, most of them only got one transaction so we just post them directly.

For cash we must do it as there are several transaction:

       CASH

<u>DEBIT          CREDIT</u>

18,000

                    (7,540)

                    (4,600)

                       (890)

36,000

<u>                     (3,370)</u>

37,600

Assets and expenses goes into debit column

Liabilities, equity and revenues into credit column

7 0
3 years ago
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