<span>Pump priming is an action taken by the government to
stimulate the economy through government spending, interest rate and tax reduction.
This is usually done during recession. It is assumed to stimulate private
spending thru government spending that could lead to economic expansion.</span>
Answer:
a. True
Explanation:
Many times a corporation might carry out a stock split in order to prevent the price of its stock to become too expensive. E.g. when Apple's stocks get too expensive, stock splits occur, The last occasion the split stocks was 7:1, i.e. for every existing Apple stock, 6 new ones were issued.
This occurs because if the price of the stock is too high, it will be harder for small investors. Remember that the total capitalization is not affected by a stock split.
Answer:
The variable rate loan term best describes this loan.
Explanation:
In these type of loans variable interest rate is charged. A variable interest rate is a floating interest rate on a loan or security (bonds,debentures) that changes over time because it is based on an underlying benchmark interest rate or index that changes periodically. So the interest payment fluctuates with change in benchmark.
The advantage of a variable interest rate is that if the underlying interest rate or index falls down, the borrower’s interest payments also decrease. Accordingly, if the underlying index rises, interest payments increase.
Answer:
Letter D is correct.<em> Extreme value retailers.</em>
Explanation:
Extreme value retailers are those whose focus is on offering customers very low prices. This type of consumer price pass-through can be guaranteed by the strategy of such retailers that reduce advertising costs and other marketing variables, and purchase their supplies from ideal suppliers who already sell at lower market prices.
They are therefore able to achieve price advantages by marketing non-durable goods, which are those that are made to be consumed immediately and constantly.
Answer:
<u>Germany</u> and <u>Japan</u>
Explanation:
Financial intermediaries refer to the institutions which serve as a link between spenders and savers. Examples of financial intermediaries are banks, investment banks, pension funds, etc.
Securities markets refer to the markets which deal with the issuance of equity, debt and derivatives securities. Such issue of securities facilitates the raising of capital by businesses.
Direct finance usually takes place in capital markets dealing in securities with maturity period of more than an year, such as equity and bonds.
Indirect finance takes place through financial intermediaries such as banks, pension funds, etc. Such intermediaries remove the operation of middlemen between lenders and borrowers.
Germany and Japan have utilized their nation's bank credit based financial system.