Answer:
so they can end up spending less on interest payments and credit card fees.
Explanation:
One reason that underpricing of new issues occurs more frequently than overpricing is that underwriters want to reduce the risk of a firm commitment. Therefore, Option A is correct.
<h3>What is
underwriting?</h3>
Some major financial institutions, including banks, insurance companies, and investment firms, offer underwriting services in which they guarantee payment in the event of damage or financial loss and accept the financial risk for liability resulting from such guarantee.
Therefore, One reason that underpricing of new issues occurs more frequently than overpricing is that underwriters want to reduce the risk of a firm commitment. Option A is correct.
Learn more about underwriting:
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"Your question is incomplete, probably the complete question/missing part is:"
A. underwriters want to reduce the risk of a firm commitment.
B. the demand for a new issue is typically too high.
C. underwriters earn low rates of return.
D. issuing firms demand that equity be underpriced.
Answer:
C. all goods and services that are in demand
Explanation:
Macroeconomics, as a branch of economics, is concerned with the performance of the economy as a whole. Macroeconomics studies the key economic indicators such as unemployment rate, growth rate, aggregate demand, inflation, and price levels. The government uses data form macroeconomic analysis to formulate policies and strategies for the country.
While microeconomics will be concerned with the income and expenditures of individuals and households, Macroeconomic will consider the consumption and revenues of the entire population. Microeconomics studies the demand for a single product. Macroeconomics focuses on the aggregate demand for products and services in a country, which is more like the GDP.
Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale
Explanation:
Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.
Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".
