Answer:
A. Structural demand is the correct answer
Answer:
13%
Explanation:
Expected return on market = ((Expected return - Risk-free rate) / Beta) + Risk-free rate
Expected return on market = ((17.50% - 8%) / 1.90) + 8%
Expected return on market = 9.5%/1.90 + 8%
Expected return on market = 0.05 + 0.08
Expected return on market = 0.13
Expected return on market = 13%
Answer:
1. When China decides to reduce its capital investment in the US, US's capital inflows, which are a source of loanable funds in the US, take a hit. This leads to a reduction in supply of loanable funds in the US, shifting the supply curve leftward.
2. When a ban is imposed on fast food restaurants, the amount loanable funds demanded by the fast food industry reduces, leading to a leftward shift m the demand curve of loanable funds.
3. When fast food restaurants are allowed to open franchised locations, the amount loanable funds demanded by the fast food industry increases, leading to a rightward shift m the demand curve of loanable funds.
4. When the US government reduces its deficit, it reduces its borrowings. A reduction in borrowing by the US government leads to a reduction in the demand for loanable funds, and therefore shifts the demand curve fur loanable funds leftward.
5. When individual start to spend more owing to the wealth effect, savings reduce, leading to a fall in the supply of loanable funds. Due to this, there occurs a leftward shift in the supply calve for loanable funds.
Answer:
Financial market
Explanation:
Financial market- it is that market place where market like stock, bond, Forex etc are trading. it is responsible for proper functioning of capitalist economies.
the different type of financial market is given below
1) stock
2) Bond
3) foreign exchange
4) commodities
it is like a new resource that provide easy return for those who want to invest their extra income.
