Answer:
b) surplus; shortage; up; fall
Explanation:
If the bond market and money market start out at equillibrum, and money supply is increased there will be an excess (surplus) of money over bonds.
That is more money to buy less bonds. The relative scarcity of bonds will result in a shortage (bond supply cannot meet demand).
As a result of the shortage price of bonds will increase because more people are looking for the scarce bonds.
Price of bonds has an inverse relationship with interest. As price increases interest rates will fall.
For example consider a zero coupon bond of $1,000, being sold for low price of $850. On maturity it will yield gain of $150.
If the price rises to $950 the yield will only be $50.
So as price increases and interest (yield) decreases, it will no more be attractive to investors and demand will reduce to meet the available supply of bonds.
Answer:
3) Corporations use acquisition as a substitute for innovation.
Explanation:
The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.
Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.
Answer:
The additional satisfaction from consuming one more unit of a good
Explanation:
Marginal utility falls as consumption increases.
The Marginal Rate of Substitution (MRS) is the rate at which consumers exchange quantities of units of one good number for another good at the same level of utility.
I hope my answer helps you
Answer:
The cost of goods available for sale is $345,000
Explanation:
Beginning finished goods inventory $25,000
Cost of Goods manufactured $320,000
Cost of Goods available for sale,
= Beginning finished goods inventory + Cost of Goods manufactured
= $25,000 + $320,000
= $345,000
Answer:
Dealer Market
Explanation:
In a dealer market, multiple dealers give out their various prices on the sales and purchases of their specific and particular security of instrument. It is a financial tool for dealers in the market. The dealer market becomes more efficient for financial securities because it provides superior mechanism which should be protected.
It enables buyers and sellers to buy and sell independently through the market makers, known as dealers.
Foreign exchange and bonds are found in the dealer market.
In the secondary market, securities are traded by investors while in the primary market, they are created.
