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3 years ago

If the efficient market hypothesis is true, price changes are independent and biased. Group of answer choices

Business

1 answer:

Yuri [45]3 years ago

5 0

Answer:

Price changes are independent but not biased in efficient market hypothesis.

Explanation:

In simple words, the efficient-market hypothesis asserts that asset prices represent all relevant knowledge. Because market rates must only respond to fresh knowledge it is difficult to continuously "beat the market" on something like a risk-adjusted approach.

Thus the given statement is partially true.

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How much money could you draw from this account?

tester [92]

The correct answer to this question is that you have $1,000 available to spend in your account today, and will have a total of $3,000 to spend in six days.

Uncollected funds is money that you have deposited into your account, but that you cannot access yet. The bank has placed a hold on the money for a specific period of time. This is normally done when you deposit a check, because your bank wants to make sure that the money from the check clears the other account before you withdraw it.

5 0

3 years ago

Read 2 more answers

Consider the following simplified balance sheet of a commercial bank: ASSETS LIABILITIES Vault cash $200 $3500 Deposits Deposits

andrezito [222]

Answer:

Check the following calculations

Explanation:

(a)

Actual Reserves = Vault cash + Deposits at the Federal Reserve

Actual Reserves = $200 + $300

Actual Reserves = $500

The actual reserves are $500.

Calculate Required Reserves -

Required Reserves = Deposits * Required reserve ratio

Required Reserves = $3500 * 0.10 = $350

The required reserves are $350.

Calculate Excess Reserves -

Excess reserves = Actual reserves - Required Reserves

Excess reserves = $500 - $350 = $150

The Excess reserves are $150.

(b)

A bank can increase the amount of its loan by the amount of excess reserves it held.

This bank has excess reserves of $150.

So, this bank can increase its loans by $150.

(c)

Calculate Money multiplier -

Money multiplier = 1/Required reserve ratio = 1/0.10 = 10

The money multiplier is equal to 10.

(d)

Calculate total expansion of loan by entire banking system -

Total expansion = Increase in loan by individual bank * Money multiplier

Total expansion = $150 * 10 = $1,500

The entire banking system can expand their loans by $1,500.

(e)

The new wealth directly created from this expansion of deposits is equal to the quantum of expansion in deposits.

The deposits has expanded by $1,500.

So, new wealth directly created from this expansion of deposits is $1,500.

5 0

3 years ago

On January 1, 20X1, Meister Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semiannually on June 30 and Decem

hoa [83]

Answer:

Debit Credit

Bank/Cash $200,000

Bonds payable $200,000

Explanation:

The journal entry which shall be recorded by Meister Company in its accounts in respect of bonds issued by it, on January 1, 20X1, is mentioned below:

Debit Credit

Bank/Cash $200,000

Bonds payable $200,000

6 0

3 years ago

The demand and supply curves are given by q=110−2p and q=3p−50, respectively; the equilibrium price is $32 and the equilibrium q

DaniilM [7]

Answer:

The Demand is given by $q^d=110-2p^d(1.07)$
The supply curve is by $q^s=3p^s-50$

Consumers will face a price of 33.29 and the equilibrium quantity will be 43.42.

These results illustrate that as a consequence of the tax, the price faced by consumers will be higher, quantity sold be lower, and producers will receive less for their product sale.

Explanation:

The Demand is given by $q^d=110-2p^d$
The supply curve is by $q^s=3p^s-50$

In the absence of taxes $p^s=p^d$ and $q^s=q^d$ .

An ad-valorem tax $t=0.07$ generates now that

$p^s=p^d(1+t)$

So the new equilibrium is

$110-2p(1.07)=3p-50$

$110+50=5.14p$

$p^s=31.12$

$p^d=33.29$

Replacing in the demand equation we get the equilibrium quantity

$q=43.42$

4 0

4 years ago

A Deaf person goes to a sports bar, and asks the manager to turn on the captions. The manager turns it on. After a few minutes,

MissTica

Answer:

resilience

Explanation:

Based on the scenario being described within the question it can be said that this is called resilience. In the context of psychology, this term refers to the ability of an individual to be able to cope with certain difficult situations. Which in this case the manager agreeing with everyone and simply following the request that have been given shows his resilience towards the situation.

8 0

3 years ago

Read 2 more answers