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3 years ago

Select all the statements that are true about Secondary Markets only.

Business

1 answer:

Contact [7]3 years ago

5 0

Answer:

The secondary market is the market in which securities are traded. This market no longer accumulates new financial resources for the issuer, but only reallocates resources among subsequent investors.

As a resale mechanism, it allows investors to freely buy and sell securities. In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities. As a result, society would be left on the losing side, since many, especially the newest, undertakings would not receive the necessary financial support.

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If the Federal Reserve announces that its target for the federal funds rate is rising from 4 percent to 4.25 percent, how do you

olganol [36]

Answer:

B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation.

Explanation:

If the FED announces that it will increase the federal funds rate, it will increase the interest that banks charge other banks for lending them money in order to comply with the reserve ratio. This increase would make banks hand out less loans and be more careful in order to reduce their need for overnight funds.

If banks reduce their loans, their capacity for creating money will also be reduced, lowering the consumption level and investment spending of both workers (households) and private firms.

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3 years ago

During 2017 the inflation rate increased slightly but remained in the "comfort zone" and the unemployment rate was low. Why mig

goblinko [34]

Answer:B It thought that unemployment was a greater problem than the rising inflation rate

Explanation:

Inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used for the few available goods and services.

Unemployment is a situation where all that are willing and capable of being employed are unable to get employment.

In the above scenario lowering Interest rates will increase the volume of money in circulation which will invariably increase inflation and we equally increase level of investment as the cost of fund will be cheaper thereby lowering unemployment.

This action means unemployment is of greater problem than rising inflation.

It does not mean inflation is of more concern than unemployment otherwise it will have increase the interest rate, it will make loanable fund demanded to exceed supply and the quantity of money in supply will increase.

7 0

4 years ago

if you receive a telephone call from someone asking that you explain your preferences for certain kinds of products, you are the

katen-ka-za [31]

If you receive a telephone call from someone asking that you explain your preferences for certain kinds of products, you are the subject of a survey.

In human research, a survey is a list of questions designed to extract specific data from a specific group of people. Surveys can be conducted by phone, email, internet, street corner or shopping mall.

A survey is a research method used to collect data from predefined groups of respondents in order to gain information and insight on various topics of interest. They have multiple purposes and researchers can implement them in different ways depending on the chosen methodology and research objectives.

Research can be divided into her two broad categories: questionnaires and interviews. A questionnaire is typically a paper-and-pencil tool filled out by respondents. Interviews are filled out by interviewers based on information provided by respondents.

Learn more about survey brainly.com/question/14610641

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7 0

2 years ago

If Highway 55 Studios can reduce fixed expenses by , by how much can variable expenses per unit increase and still allow the co

solniwko [45]

Answer:

$2.25

Explanation:

Please check the attached image for the full question used in answering this question

Breakeven sales is the quantity sold at which net income is equal to zero.

Breakeven sales = fixed cost / (price per unit - variable cost per unit )

$1,215,000 / ($80 - $35) = 27,000

If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =

27,000 = ($1,215,000 - $60,750) / ($80 - V)

27,000 = 1,154,250 / ($80 - V)

V = $37.25

Variable cost would increase by : $37.25 - $35 = 2.25

8 0

4 years ago

Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,500 under each of the fol

Katena32 [7]

Answer:

a. The first payment is received at the end of the first year, and interest is compounded annually.

present value = annual payment x PVIFA

annual payment = $3,500

PVIFA, 12%, 5 periods = 3.6048

present value = $12,616.80

b. The first payment is received at the beginning of the first year, and interest is compounded annually.

annual payment = $3,500

PVIF annuity due, 12%, 5 periods = 4.0373

present value = $14,130.55

c. The first payment is received at the end of the first year, and interest is compounded quarterly.

present value = annual payment x PVIFA

annual payment = $3,500

effective interest rate = 1.03⁴ - 1 = 12.55%

PVIFA, 12.55%, 5 periods = 3.5562

present value = $12,446.70

7 0

3 years ago