manage household expenses means cutting a lot of checks
ans is a checking account
Given the four fundamental factors that affect the cost of money, only options b and d are correct.
Statement b is true:
When people invest their money, they are foregoing consumption in that current period that they are in.
They expect their invested capital to yield them interests as compensation for not spending the money earlier.
Statement d is true:
When people invest, what they look out for are risks and most importantly the returns that they would get from investing their capital.
A 10% investment return is greater than a 6% return. Because this return is higher, it would therefore attract more capital investment.
Options a and c are false.
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Answer:
The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.
Explanation:
Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.
Thus, <em>metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.</em>
Answer:
Buying a new house.
Explanation:
You must evaluate the arguments of the different real estate agents and determine what are the strongest ones to you. When buying a new house, you must think about: Location, Neighborhood, Price.
Location: Is always the key aspect in any real state operation, you must determine if the house is located in a place that will give you a good quality of life and this is really personal because is not only from an effective point of view that you must determine this but for a emotional point of view.
Neighborhood: Is the neighborhood community meaningful to you? can you easily relate to them? Do you know this place from a long time or is a desire?
Price: This might be the easiest aspect to cover after you are truly convinced of the first 2. In this you must determine if you want to pay using a credit or not and select the credit that must adapt your current income.
Answer:
The false statement is letter "A": We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
Explanation:
An effective portfolio is a portfolio with the highest expected revenue for a given risk level or a portfolio with the lowest risk level for a given expected revenue. When the portfolio has reached either one of the two points it is said that it has reached its efficient frontier.
In that case, option "A" is false since the portfolio efficiency has nothing to do with the similarity it may have with another one.