Answer:
The Money Market.
Explanation:
The Financial markets can be broadly classified into two categories: Capital Market and Money Market. This classification is based on the maturity period of Financial instruments that trade in these markets. Lets study these two types of markets in detail:
<u>Money Market</u>
It is a market in which securities with a maturity of less than one year are traded. This is highly liquid market since the investors are repaid with the invested amount within one year of time. Due to a short duration, the instruments traded in this market are exposed to lower interest rate risk. A popular example of money market instrument can be Treasury Bills.
<u>Capital Market</u>
The securities that are traded in capital market are long-term and have a maturity of more than one year. The securities of capital market offer beefy returns to the investors due to higher duration and interest rate risks. If the security is of equity nature, then the market is termed as stock market. And if the traded security is bond, then we refer to it as a bond market. Examples of capital market instruments are shares and bonds.
Answer:
C) price lining
Explanation:
Based on the information provided within the question it can be said that Holly’s Candle Shop appears to be using price lining. This refers to a business decision in which a range of products from the same product line are priced differently depending on the difference in quality. Which is most likely the case in Holly's store since she sells only candles but the higher quality candles are priced at $10 while the lowest quality ones are priced at $6.
Answer:
Land 373,500
Building 1,100,000
<u />
land improvements 67,000
Fence 55,000
Sign 12,000
Explanation:
Land cost:
cash 160,000
note payable 145,000
delinquent property tax 4,000
insurance costing 1,500
level the land 3,000
soil <u> 60,000</u>
Total land: 373,500
The land will be recorded for all the cost necessary to get it ready for use.
The soil, once added can't be differentiate from the original land. It is added to the land is not an improvement.
The office building will be for 1,100,000
land improvements will be the fence and signs:
fence 55,000
sign <u> 12,000 </u>
total 67,000
Answer:
C. A surplus of agricultural goods
Explanation:
Un-intervened markets are at equilibrium where Market Demand = Market Supply. Market Supply curve is upward sloping, due to price - supply direct relationship. Market demand curve is downward sloping, due to price - demand inverse relationship. Both curves intersect at equilibrium.
Price floor is minimum mandated price by government, below which a good cant be sold in the markets. It is usually set above market price, to protect the interest of sellers. Eg : Minimum Support price, of agricultural goods, set for protecting interests of sellers (farmers) from volatile prices.
This mandate set artificially high price : leads to supply being more than demand, as supply is directly & demand is inversely related to price. So, supply > demand implies that agricultural goods are at surplus in markets.
Answer:
Explicit costs are the costs which requires the money to pay.
On the other hand, implicit costs refers to the benefit that is foregone by choosing some other work or doing some other activity.
Therefore,
Explicit costs are as follows:
1. Wages pays to his hired hand
2. Buys feed for his cows.
3. Gas expense that is used in truck
Implicit costs are as follows:
1. Foregone income of $27,000 from working at a dairy plant as a technician.
2. Time taken for extracting milk from all the cows.
