Answer:
a. M1 falls and M2 remains the same.
Explanation:
in money supply M1 stand for the most liquid forms: currency, coins, traveler check, checking account
while M2 is M1 + near money wich are saving account, time deposit among other
Thus, Ms Anniston make M1 fall while M2 remains the same
Answer:
Commercial paper
Explanation:
Commercial paper is a term in business or economics that describes money-market security issued by corporation, which is considered unsecured, so as to obtain funds to meet short-term debt or obligation, such as financing of payroll, and inventories.
It is supported only by issuing bank or company promise to pay the face amount on the maturity date often 270 days or less, as specified on the note.
Hence, COMMERCIAL PAPER is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less.
The current ratio will remain the same as 1 only
The acid-test ratio will decrease.
- The current ratio will stay the same because there won't be a change in current liabilities, and the change in current assets won't have any net consequences because the asset will grow due to an increase in inventory, but it will also decrease by the same amount due to a decrease in cash, so the current ratio will stay the same.
- The acid-test ratio will decline since the numerator will shrink owing to a cash shortage, and the growth in inventory won't be taken into account because current assets aren't included in this ratio.
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Answer: Moral hazard
Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.
There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.
Thus, from the above we can conclude that the correct option is A .
I think the correct answer would be politicians trading favors that do not benefit the mass populace of voters. Rent seeking is a practice that involves the use of public policy in order to get benefit from it like increasing their benefits in the expense of other. This oftentimes done by a number of politicians.
