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Stells [14]
3 years ago
8

Impact of Treasury Financing on Bond Prices The Treasury periodically issues new bonds to finance the deficit. Review recent iss

ues of the Wall Street Journal or check related online news to find a recent article on such financing. Does the article suggest that financial markets are expecting upward pressure on interest rates as a result of the Treasury financing
Business
1 answer:
brilliants [131]3 years ago
3 0

Answer:

When the treasury bonds are restricted to purchase it creates pressure on other securities and interest rates tend to move upwards.

Explanation:

When interest rates more upwards then cost of borrowing is increased. This increase in cost of borrowing creates pressure on the profits of private sector.  The public sector benefits from this increase in interest rates. When government is in trouble and financing is limited then these measures are used to run the economy.

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A stock had returns of 16 percent, 12 percent, 19 percent, 17 percent, 18 percent, and -1 percent over the last six years.
pickupchik [31]

Answer:

What is the arithmetic return for the stock?

  • arithmetic returns basically refer to the mean (or average) of the returns = (16% + 12% + 19% + 17% + 18% - 1%) / 6 = 81% / 6 = 13.5%

What is the geometric return for the stock?

  • geometric returns involves multiplying the returns and then squaring them = ⁶√(1.16 x 1.12 x 1.19 x 1.17 x 1.18 x 0.99) - 1 = 1.1328 - 1 = 0.1328 = 13.28%

Normally, geometric returns are lower than arithmetic returns, and they represent compounding rates.

8 0
3 years ago
One of the purposes of studying economics is to understand the
erastovalidia [21]

Answer:

Individuals, businesses and governments are all faced with making choices in situations where resources are scarce. This is where a knowledge of Economics is vital. Economics applies to most aspects of everyday life. By studying Economics you will examine topics of obvious importance to human well-being.

Explanation:

8 0
3 years ago
Read 2 more answers
Which of the following is a capital expenditure? Payment of an account payable. Retirement of bonds payable. Payment of Federal
marusya05 [52]

Answer:

The correct answer is the last option: None of these answers are correct.

Explanation:

To begin with, the name of "Capital Expenditure", in the field of business refers specifically to the money that a company spends with the purpose to buy, maintain or improve its fixed assets. Therefore that it is quite simple to recognize the assets that are considered to be capital expenditure due to the fact that they are the ones in which the money is spended in order to extend the useful life that they have or when they are recently new and intend to stay in the company for a considerable period of time. Examples of capital expenditure are: vehicles, buildings, equipments or land.  

3 0
3 years ago
According to the article, which of the following components of the ACA would
bonufazy [111]

The option of  the components of the ACA that would not put upward pressure on health insurance costs to consumers is a lack of competition in health insurance markets.

<h3>What is the Affordable Care Act?</h3>

This is known as an Ct that came to being in 2010, the time when the Patient Protection and Affordable Care Act (ACA) was said to be passed.

The Act covers provision of health insurance to people that is not currently covered and to lower the costs in all of U.S. health care system.

When there is no competition in health insurance markets, upward pressure is not place to deliver affordable health insurance.

With low-income consumers receiving

new subsidies to pay for health insurance, and with insurers having to cover new patients with preexisting conditions that often require expensive treatment, one should

expect that more services would lead to higher costs.

Economic theory suggests that increasing the level of

competition in the insurance market could decrease

monopolistic practices and reduce costs to consumers.

Based on market concentration data, the United States

See full options below

According to the article, which of the following components of the ACA would likely not put upward pressure on health insurance costs to consumers?

a. Insurers covering preexisting conditions that often require expensive treatment

b. A lack of competition in health insurance markets

c. Incentives for more consumers to own health insurance policies

d. All of the above

Learn more about  health insurance from

brainly.com/question/1941778

4 0
2 years ago
What is ivan's marginal benefit if he decides to stay open for six hours instead of five hours?
Delicious77 [7]

Ivan's marginal benefit if he decides to stay open for six hours instead of five hours is $20. The marginal benefit can be solved by subtracting the total revenue of the equivalent hours.

$550 (6 hours) - $530 (5 hours) = $20  

4 0
3 years ago
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