stabilization policy refers to policy actions aimed at: reducing the severity of short-run economic fluctuations. equalizing incomes of households in the economy. maintaining constant shares of output going to labor and capital. preventing increases in the poverty rate.

Answers

Answer 1

Stabilization policy refers to policy actions aimed at reducing the severity of short-run economic fluctuations.Option (1)

These policy actions are designed to help stabilize the economy during periods of recession or inflation by influencing aggregate demand through monetary or fiscal policy tools.

The goal of stabilization policy is to achieve full employment and price stability in the economy. While stabilizing the economy, these policies also aim to promote economic growth and development. Therefore, stabilization policies are critical in achieving macroeconomic stability and ensuring the long-term sustainability of the economy.

Learn more about Stabilization policy

https://brainly.com/question/28345380

#SPJ4

Full Question: Stabilization policy refers to policy actions aimed at:

reducing the severity of short-run economic fluctuations. equalizing incomes of households in the economy. maintaining constant shares of output going to labor and capital. preventing increases in the poverty rate.

Related Questions

on december 18, intel receives $240,000 from a customer toward a cash sale of $2.4 million for computer chips to be completed on january 23. the computer chips had a total production cost of $1.4 million. what journal entries should intel record on december 18 and january 23? assume intel uses the perpetual inventory system.

Answers

On December 18, Intel would record the following journal entry to recognize the customer's prepayment:

Debit: Cash $240,000

Credit: Unearned Revenue $240,000

On January 23, when the computer chips are completed and delivered, Intel would record the following journal entry to recognize the revenue and cost of goods sold:

Debit: Unearned Revenue $2,160,000 (2.4 million - 240,000)

Credit: Sales Revenue $2,160,000

Debit: Cost of Goods Sold $1,400,000

Credit: Inventory $1,400,000

The first entry records the receipt of cash from the customer, which is recorded as unearned revenue since the chips have not yet been delivered. The second entry recognizes the revenue and the cost of goods sold associated with the sale, based on the production cost of the chips.

The unearned revenue account is debited for the amount of the prepayment that is now earned and the sales revenue account is credited for the total sale amount. The inventory account is debited for the cost of producing the goods and the cost of goods sold account is credited for the same amount.

To know more about Computer chips:

https://brainly.com/question/30135784

#SPJ4

3. suppose mary (on her 30th birthday) has just inherited a large sum of money. rather than making equal annual payments, she has decided to make one lump sum deposit today to cover the entire cost of her retirement, how much would she need to deposit today to cover the anticipated withdrawals?

Answers

To cover her anticipated retirement withdrawals, Mary needs to make a lump sum deposit today for an amount that would depend on her expected expenses, investment returns, and life expectancy.

Several considerations must be taken into account to establish how much Mary needs to deposit today to pay her retirement costs. Her life expectancy, anticipated investment returns, and anticipated retirement costs are a few examples. In addition, one must account for inflation and unplanned costs.

Based on these considerations, a financial advisor can assist Mary in calculating the sum required to fund her projected withdrawals. Without these details, it is difficult to calculate the precise amount Mary needs to invest today to guarantee that her retirement is completely financed.

Learn more about retirement:

https://brainly.com/question/28128413

#SPJ4

little corporation has pretax accounting income of $100,000. little has interest on municipal bonds of $9,000. depreciation for tax purposes is $4,000 greater than depreciation for financial reporting purposes. little paid life insurance on executive officers of $5,000. warranty expense was $10,000, and warranties paid for tax purposes was $8,000. calculate taxable income.

Answers

The taxable income for Little Corporation is $98,000.

How to calculate taxable income

To do this, we'll consider the pretax accounting income, municipal bond interest, depreciation differences, life insurance expense, and warranty expenses.

Pretax accounting income:

$100,000 Interest on municipal bonds is tax-exempt, so we do not need to include the $9,000 in the taxable income calculation.

Depreciation difference:

For tax purposes, depreciation is $4,000 greater than for financial reporting purposes.

This means we need to reduce the taxable income by $4,000.

Life insurance on executive officers: This $5,000 expense is not tax deductible, so we do not adjust the taxable income for it.

Warranty expense:

The difference between the warranty expense ($10,000) and warranties paid for tax purposes ($8,000) is $2,000.

Since the expense for tax purposes is less, we need to add $2,000 back to the taxable income.

Now we can calculate the taxable income:

$100,000 (pretax accounting income) - $4,000 (depreciation difference) + $2,000 (warranty difference) = $98,000.

Learn more about taxable income at

https://brainly.com/question/15079191

#SPJ11

DVR, Inc. can borrow dollars for five years at a coupon rate of 2.75 percent. Alternatively, it can borrow yen for five years at a rate of .85 percent. DVR prefers dollar borrowing. The five-year yen swap rates are .64--.70 percent and the dollar swap rates are 2.41--2.44 percent. The current ¥/$ exchange rate is 87.575. Illustrate how currency swap helps DVR lower its dollar borrowing cost.

Answers

DVR takes out a loan of $10 million at a rate of 2.75 percent. Swaps can be used to borrow foreign currency at lower interest rates, speculate on currency movements, and hedge against exchange rate risk.

How would you work out cost of acquiring?

Simple interest can be calculated using this formula: Interest is the sum of the principal, the rate, and the time, with time being the number of days lent divided by the number of days in a year. You will be responsible for $125.00 in interest over the course of a year if you take out a loan for $2,500.00 at a rate of 5%. 05 x 1). At a coupon rate of 2.75 percent, dollars can be borrowed for five years by DVR, Inc. It also has the option of borrowing yen for five years at a rate of 1.85%. DVR prefers to borrow in dollars. The swap rates for the five-year yen are 0.64-0.70%, while the swap rates for the dollar are 2.41-2.44%.

The value that individuals pay to acquire cash. Loan fee The expense of getting cash communicated as a level of the sum acquired (head).

To learn more about currency visit :

https://brainly.com/question/30051452

#SPJ1

A ______ forecasting model attempts to establish whether an explanatory variable influences the outcome of a response variable
residual
casual

Answers

A causal forecasting model attempts to establish whether an explanatory variable influences the outcome of a response variable.

This type of model is used to determine the cause-and-effect relationship between variables, with the goal of predicting how changes in one variable will impact the other variable.

The model establishes a causal relationship between the variables by controlling for other potential influences and identifying the specific effect of the explanatory variable on the response variable.

Causal forecasting models are commonly used in various fields, including economics, marketing, and social sciences, to understand and predict the impact of interventions or policy changes.

These models can be complex and require a deep understanding of the underlying causal mechanisms, as well as careful data collection and analysis.

Some popular techniques used in causal forecasting models include regression analysis, time series analysis, and experimental design.

By using causal forecasting models, researchers and practitioners can make more accurate predictions and informed decisions based on the expected effects of specific interventions or changes.

To learn more about causal forecasting model here:

https://brainly.com/question/14127087

#SPJ11

Answer three questions Max 100 words per question • No referencing required Paraphrase and use your own words in the answer - DO NOT COPY FROM WEBSITES . Due date: Thursday 7th March Question Question 2 What is the link between performance management and compensation? Demonstrate your answer with an example.

Answers

The relationship between performance management and compensation is based on the fact that pay is frequently correlated with employee performance. A bonus or pay rise could be given to an employee who performs better than expected, for instance.

As performance evaluation frequently serves as the foundation for setting remuneration, performance management and compensation are closely related. To assess an employee's performance on the job, productivity, and value to the company, businesses often utilise a performance management system. Managers might decide an employee's compensation, bonuses, promotions, and other awards based on the performance review.

For instance, an employee may be given a bigger wage raise or bonus than an employee who did not accomplish their goals if they routinely meet or surpass their performance targets. Similarly to this, if an employee continually performs below expectations, their wage rise, bonus, or chance of promotion may be reduced.

Learn more about performance management:

https://brainly.com/question/30144545

#SPJ4

I have 3 investment portfolios with 4 types of investments: stocks, bonds, t-bills, and hard assets/real estate. I am having a hard time calculating the weighted average and figuring out for each portfolio if the asset allocation is helping it or hurting it.

Answers

To calculate the weighted average of your investment portfolios, you need to determine the percentage of each type of investment in each portfolio and multiply it by the corresponding rate of return. Then, you can add up the products to get the weighted average rate of return for each portfolio.

To determine if the asset allocation is helping or hurting each portfolio, compare the actual rate of return with the expected rate of return based on the desired asset allocation.

If the actual rate of return is higher than expected, the asset allocation is helping the portfolio. If it's lower, the allocation is hurting the portfolio.

B. To calculate the weighted average rate of return for each portfolio, follow these steps:

Determine the percentage of each type of investment in the portfolio.

Multiply each percentage by the corresponding rate of return for that investment.

Add up the products to get the weighted average rate of return for the portfolio.

For example, if Portfolio 1 has 40% stocks with a 10% rate of return, 30% bonds with a 5% rate of return, 20% t-bills with a 2% rate of return, and 10% real estate with a 7% rate of return, the calculation would be:

(0.40 x 0.10) + (0.30 x 0.05) + (0.20 x 0.02) + (0.10 x 0.07) = 0.057 or 5.7%

To determine if the asset allocation is helping or hurting the portfolio, compare the actual rate of return (5.7%) with the expected rate of return based on the desired asset allocation.

If the desired asset allocation was, for example, 50% stocks with a 10% rate of return, 20% bonds with a 5% rate of return, 20% t-bills with a 2% rate of return, and 10% real estate with a 7% rate of return, the expected rate of return would be:

(0.50 x 0.10) + (0.20 x 0.05) + (0.20 x 0.02) + (0.10 x 0.07) = 0.069 or 6.9%

Since the actual rate of return (5.7%) is lower than the expected rate of return (6.9%), the asset allocation for Portfolio 1 is hurting its performance. Repeat this process for each portfolio to determine if their asset allocations are helping or hurting their performance.

For more questions like Investment click the link below:

https://brainly.com/question/15105766

#SPJ11

Over the past 150 years, the U.S. economy has endured a recession on average about every:
A) one to two years.
B) four to five years.
C) 10 to 15 years
D) 50 years

Answers

Over the past 150 years, the U.S. economy has endured a recession on average about every: B) four to five years. Thus, the correct answer is option B.

A recession is referred to a significant, widespread, and prolonged downturn in economic activity. Generally, recession can be calculated as:

two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used. Economists at the National Bureau of Economic Research (NBER) measure recessions by looking at nonfarm payrolls, industrial production, and retail sales, moving beyond the simpler two quarters of negative GDP measure.

Recessions are a normal part of the economic cycle, and they occur when there is a decline in economic activity for a period of time. The U.S. economy typically experiences a recession every four to five years, though the length and severity of each recession may vary. Thus, the correct answer is option B.

To learn more about recession, visit: https://brainly.com/question/1417711

#SPJ11

the kind of learning that applies to voluntary behavior is called __________. group of answer choices classical conditioning marginal learning effective based learning instrumental conditioning

Answers

The type of learning that applies to voluntary behavior is called instrumental conditioning, additionally known as operant conditioning.

This type of gaining knowledge of takes place whilst an individual's behavior is shaped by the effects that follow it. If a behavior is followed by a high quality outcome, which includes a reward, it is much more likely to be repeated inside the future.

Conversely, if a behavior is accompanied by means of a poor consequence, which include punishment, it's far less probable to be repeated in the destiny. Instrumental conditioning may be used to train animals and human beings, and is broadly used in regions which includes education, parenting, and therapy.

Learn more about instrumental conditioning:-

https://brainly.com/question/25877954

#SPJ4

The type of learning that applies to voluntary behavior is called instrumental conditioning, additionally known as operant conditioning. This type of gaining knowledge of takes place.

whilst an individual's behavior is shaped by the effects that follow it. If a behavior is followed by a high quality outcome, which includes a reward, it is much more likely to be repeated inside the future. Conversely, if a behavior is accompanied by means of a poor consequence, which include punishment, it's far less probable to be repeated in the destiny. Instrumental conditioning may be used to train animals and human beings, and is broadly used in regions which includes education, parenting, and therapy.

Learn more about instrumental conditioning here:

brainly.com/question/25877954

#SPJ11

an example of management by exception occurs when a manager investigates a large variance in a performance report to assign responsibility. question content area bottom part 1 true false

Answers

The statement " example of management by exception occurs when a manager investigates a large variance in a performance report to assign responsibility. " is true.

Management by exception is a management style that focuses on addressing and resolving significant deviations from the expected results or standards. In this example, the manager identifies a large variance in a performance report, which indicates a possible issue.

Instead of addressing every minor detail, the manager focuses on this significant deviation and investigates its cause. Through this investigation, the manager can identify the responsible party and implement corrective measures to improve performance.

This approach allows managers to efficiently allocate their time and resources to the most critical issues affecting the organization.

To know more about investigation click on below link:

https://brainly.com/question/29365121#

#SPJ11

A proprietor of an enterprise intends converting his business into a limited liability company. He also intends to have shareholders made up of 5 members as against 6 members proposed by his wife in a discussion. He has approached you as a postgraduate student in taxation to advise him on the relevance of the number of shareholders in a limited liability company setting. Required: Advise for tax planning purposes, the relevance of numbers of shareholders. (5 marks)

Answers

In advising the proprietor of an enterprise on the relevance of the number of shareholders in a limited liability company setting, for tax planning it is important to consider tax implications, control and decision-making preferences, ease of raising capital, and legal requirements.

1. Tax implications: The number of shareholders may impact the company's tax liability. Generally, a larger number of shareholders may provide an opportunity to distribute income more efficiently and lower the overall tax burden. However, this may vary depending on the local tax regulations.

2. Control and decision-making: The number of shareholders can also impact the level of control and decision-making within the company. With a smaller number of shareholders (e.g., 5 members), the proprietor may retain more control over the company's operations and decisions. However, having more shareholders (e.g., 6 members) may lead to more diverse perspectives and shared responsibility.

3. Ease of raising capital: The number of shareholders can affect the company's ability to raise capital. A larger number of shareholders may make it easier to raise funds through the issuance of shares, while a smaller number may limit the company's access to capital.

4. Legal and regulatory requirements: The number of shareholders may be subject to legal and regulatory requirements, which may impact the company's ability to operate as a limited liability company. It is essential to review local laws and regulations to ensure compliance.

In conclusion, the proprietor should weigh the advantages and disadvantages of having 5 or 6 shareholders in the limited liability company setting. The decision should be based on the specific tax implications, control and decision-making preferences, ease of raising capital, and legal requirements in their jurisdiction.

Learn more about Limited liability company:

https://brainly.com/question/13304738

#SPJ11

Suppose a stock had an initial price of $61 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $69.
Requirement 1:
Compute the percentage total return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Percentage total return: %
Requirement 2:
What was the dividend yield? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Dividend yield %
Requirement 3:
What was the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Capital gains yield %

Answers

Suppose a stock had an initial price of $61 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $69.

Requirement 1: Compute the percentage total return.
Step 1: Calculate the capital gain by subtracting the initial price from the ending price.
Capital Gain = $69 - $61 = $8

Step 2: Calculate the total return by adding the capital gain and the dividend.
Total Return = Capital Gain + Dividend = $8 + $1.40 = $9.40

Step 3: Calculate the percentage total return by dividing the total return by the initial price and multiplying by 100.
Percentage Total Return = (Total Return / Initial Price) * 100 = ($9.40 / $61) * 100 = 15.41%

Percentage total return: 15.41%

Requirement 2: What was the dividend yield?
Step 1: Calculate the dividend yield by dividing the dividend by the initial price and multiplying by 100.
Dividend Yield = (Dividend / Initial Price) * 100 = ($1.40 / $61) * 100 = 2.30%

Dividend yield: 2.30%

Requirement 3: What was the capital gains yield?
Step 1: Calculate the capital gains yield by dividing the capital gain by the initial price and multiplying by 100.
Capital Gains Yield = (Capital Gain / Initial Price) * 100 = ($8 / $61) * 100 = 13.11%

Capital gains yield: 13.11%

To know more about Dividend Yield refer here

https://brainly.com/question/28044310#

#SPJ11

montana company was authorized to issue 200,000 shares of common stock. the company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock. the number of outstanding shares of common stock was: multiple choice 190,000. 60,000. 40,000. 50,000.

Answers

There were 40,000 shares of common stock that were still outstanding. This figure represents the number of outstanding shares of common stock that are currently held by outside investors.

Option C is the appropriate response.

Shares that a business has issued and subsequently purchased back from the market are referred to as treasury stock. Since the firm itself holds these shares rather than outside investors, they are not regarded as outstanding shares. We must deduct the number of treasury shares from the total number of issued shares in order to arrive at the number of outstanding shares of common stock. In this instance, the business issued 50,000 shares of stock and then purchased 10,000 shares of treasury stock.

Therefore, the number of outstanding shares of common stock would be:
Outstanding shares = Issued shares - Treasury shares
Outstanding shares = 50,000 - 10,000
Outstanding shares = 40,000

The correct answer is option c 40,000.

For more such questions on stock

https://brainly.com/question/26128641

#SPJ11


How long does a 40,000 note with 4.02% simple interest
have to run to equal 41,400?

Answers

A 40,000 note with a 4.02% simple interest rate has to run for approximately 87.06% of a year to equal 41,400. To determine how long a 40,000 note with 4.02% simple interest has to run to equal 41,400, you can follow these steps:

1. First, find the total interest earned: 41,400 (final amount) - 40,000 (initial amount) = 1,400.

2. Next, calculate the annual interest: 40,000 (principal) x 0.0402 (interest rate) = 1,608.

3. Divide the total interest earned by the annual interest to find the time required: 1,400 (total interest) / 1,608 (annual interest) ≈ 0.8706.

4. Convert the decimal value to a percentage: 0.8706 x 100 ≈ 87.06%.

5. Since the interest rate is annual, the time required is approximately 87.06% of a year.

To know more about simple interest rate refer here:

https://brainly.com/question/25845758#

#SPJ11

al and bill operate the only two barber shops in a small town. they might try to form a cartel to charge a high price for hair cuts. the payoffs represent their daily from charging high and low prices. which cell represents a nash equilibrium? question 7 options: a. b. c. d. question 8 (1 point)

Answers

The cell with the payoff of (Al: $100, Bill: $100) represents a Nash equilibrium.

In this cell, both Al and Bill have the same payoff and neither has an incentive to deviate from the cartel agreement. If one of them tries to lower the price, customers will flock to their shop and the other will increase its price to capture the additional customers.

This will result in both shops losing profits. Therefore, they will both stick to the agreement and charge a high price.

For more questions like Profit click the link below:

https://brainly.com/question/15036999

#SPJ11

Take another look at the individual components of the Income
Statement. Which of these do you
believe you can influence and why? Be specific. For example, if
Gross Profit is too low, what can be
done

Answers

If gross profit is too low, one of the first things that can be done is to increase the prices of products or services. This will result in increased revenues and increased gross profit.

Additionally, reducing expenses can also help to increase gross profit. This can be done by cutting down on unnecessary costs such as advertising, or by renegotiating contracts with suppliers to get better deals. Another option is to focus on increasing the efficiency of operations, which can result in cost savings that can be used to increase gross profit.

Additionally, improving the quality of products or services can also result in increased gross profit, as customers are willing to pay more for a quality product or service. All of these strategies can help to increase gross profit and help to maximize the profitability of a business.

Know more about gross profit here

https://brainly.com/question/16999019#

#SPJ11

The "ideal" acid test ratio is deemed to be a. 3:1 O b. 2:1 O C. 1:1 O d. None of the options

Answers

The "ideal" acid test ratio is deemed to be 1:1, also known as the quick ratio.

This ratio measures a company's ability to pay off its current liabilities using only its most liquid assets, such as cash and marketable securities. It excludes inventory and prepaid expenses, which may not be easily converted into cash. A higher quick ratio indicates that a company has a better ability to meet its short-term obligations.

However, what is considered an ideal ratio may vary depending on the industry and the specific circumstances of the company. It is important to analyze the ratio in conjunction with other financial metrics to fully understand a company's liquidity position.

For more such questions on quick ratio , click on:

https://brainly.com/question/29379631

#SPJ11

The move toward access instead of ownership is a sign of cognitive surplus. A. True B. False.

Answers

The move toward access instead of ownership is not necessarily a sign of cognitive surplus. The statement is False.

Cognitive surplus refers to the idea that individuals have free time and cognitive resources that can be used for productive activities beyond traditional forms of consumption, such as watching TV or playing video games.

The move toward access instead of ownership can be driven by various factors, such as changing consumer preferences, technological advancements, environmental considerations, or economic factors. It may not necessarily be directly correlated with cognitive surplus.

While cognitive surplus can potentially be utilized in productive activities, such as creating content, contributing to online communities, or engaging in creative pursuits, the move toward access-based models of consumption is not solely indicative of cognitive surplus.

It is a broader social and economic trend that is influenced by multiple factors.

To know more about cognitive surplus, refer here:

https://brainly.com/question/28420196#

#SPJ11

a group of small businesses constituting a single organization in order to spread health risks and negotiate more affordable health insurance is known as:

Answers

In order to combat the rising cost of health insurance, small businesses may band together to form a larger organization that can negotiate more affordable health insurance plans. This type of organization is known as a ""health insurance cooperative"" or ""health insurance alliance.""

Health insurance cooperatives are essentially groups of small businesses that come together to create a larger pool of individuals for insurance purposes. This allows the group to spread out the health risks among a larger population, which can help to reduce the overall cost of health insurance.

By banding together, these small businesses can also leverage their collective bargaining power to negotiate better rates with insurance providers. This can result in lower premiums and better coverage options for all members of the cooperative.

Health insurance cooperatives can be especially beneficial for small businesses, which may not have the bargaining power or resources to negotiate favorable insurance rates on their own. By pooling their resources and negotiating as a group, these small businesses can level the playing field and provide their employees with access to high-quality health insurance at an affordable price.

Overall, health insurance cooperatives are a powerful tool for small businesses looking to provide their employees with access to affordable health insurance. By working together, these businesses can spread out the health risks among a larger pool of individuals and negotiate better rates with insurance providers, ultimately resulting in better health outcomes for all involved.

Click the below link, to learn more about  insurance cooperative:

https://brainly.com/question/3739748

#SPJ11

Airline A’s demand curve is P(Q) = 120 – 0.2Q where Q stands for the airline’s output in number of seats. Assume all flights will be fully loaded. When a uniform price is charged, the marginal revenue will be MR(Q) = 120-0.4Q. The marginal cost of operating flights in the market is MC(Q) = 0.6Q and the total cost is C(Q) = 3000 + 0.3Q2.
(a) How much is the profit-maximizing output level? How much is the maximum profit that Airline A can earn?
(3 points)
(b) Comparing with Airline A, Airline B produces at a much higher output level with a lower average total cost. Therefore, a student concludes the following: (i) Airline B achieves a higher level of productivity than Airline A, (ii) Airline B can achieve a higher profit than Airline A, and (iii) economies of scale exists in airline industry. Do you agree with the above conclusions? Why?(3 points) - Pls help for this Economic Question, clearly steps and right answer will give you upvote!-

Answers

Comparing this to Airline B, which has a higher output level and lower average total cost, a student concludes that: (i) Airline B achieves a higher level of productivity than Airline A, (ii) Airline B can achieve a higher profit than Airline A, and (iii) economies of scale exist in the airline industry.

I agree with these conclusions because:

(i) Higher output level at a lower average total cost indicates that Airline B can produce more seats per unit of input, making it more productive than Airline A.

(ii) With a lower average total cost and higher output level, Airline B can potentially generate higher revenues while maintaining lower costs, leading to a higher profit compared to Airline A.

(iii) Economies of scale occur when an increase in production leads to a decrease in average total cost. Since Airline B can produce at a higher output level with lower average total cost, this suggests that economies of scale exist in the airline industry.

Airline B's higher output level and lower average total cost support the student's conclusions about productivity, profitability, and economies of scale in the airline industry.

Know more about airline industry here:

https://brainly.com/question/30564590

#SPJ11

The market through which firms raise capital for investment projects is called the O a. Secondary market O b. Derivatives market O c. Primary market O d. Bond Market O e. Stock market

Answers

The market through which firms raise capital for investment projects is called the primary market (option c).

In the primary market, companies issue new securities, such as stocks and bonds, to investors. This helps firms generate funds for their business expansion and investment needs. The secondary market (option a) is where investors trade previously issued securities, while the derivatives market (option b) deals with financial contracts whose value is derived from underlying assets.

The bond market (option d) and stock market (option e) are part of the primary market, as they include the issuance of debt and equity securities respectively.

For more such questions on primary market , click on:

https://brainly.com/question/17168396

#SPJ11

20 pts Question 4 A bond has a maturity of 20 years, a coupon rate of 6% (paid annually), and a par value of $1,000. The risk-free rate is 1.25%. If you think the appropriate risk premium is 5%, what is the fair price of the bond? (Answer in dollars, let Canvas do the rounding) Question 5 20 pts The bond is in fact trading at $871. What is the risk premium on the bond according to the market? (Answer with a numerical value, such as 0.011, not 1.1%. Do not round, let Canvas do the rounding)

Answers

The present value of the bond can be calculated using the formula:

PV = (C / r) x (1 - (1 / (1 + r)^n)) + (F / (1 + r)^n)

Where:

PV = present value of the bond

C = annual coupon payment

r = discount rate (risk-free rate + risk premium)

n = number of years to maturity

F = face value (par value) of the bond

Substituting the given values, we get:

PV = (60 / 0.0625) x (1 - (1 / 1.0625^20)) + (1000 / 1.0625^20)

Therefore, the fair price of the bond is $1,029.16.

The risk premium on the bond according to the market can be calculated as follows:

Risk premium = (coupon payment / market price) - yield to maturity

Substituting the given values, we get:

Risk premium = (60 / 871) - (1.0625^20 - 1) / (2 x (1.0625^20 + 1))

Therefore, the risk premium on the bond according to the market is 6.97%.

For more questions like Bond click the link below:

https://brainly.com/question/17405470

#SPJ11

which of the following would be true of policies taken during times of both high and low unemployment? increasing government spending will stimulate the economy. the multiplier effect will magnify the influence of policies. reducing the money supply will reduce inflation. cutting taxes will cause an increase in gdp.

Answers

The following statement would be true of policies taken during times of both high and low unemployment:

"The multiplier effect will magnify the influence of policies."

The multiplier effect refers to the idea that an initial increase in spending or investment can lead to a larger increase in overall economic activity. For example, if the government increases spending by $100 million, this could lead to an increase in GDP by $200 million due to the multiplier effect. The multiplier effect works in both high and low unemployment environments because it is a fundamental concept in macroeconomics.

The other statements may not necessarily be true of policies taken during times of both high and low unemployment. For example, increasing government spending may not always stimulate the economy, and cutting taxes may not always cause an increase in GDP

To learn more about  unemployment here

https://brainly.com/question/305041

#SPJ4

think about the different ways the chapter and video describe to organize an analytical report. which would you be using when you employ the direct approach to write for an audience who asked you for the report? a

Answers

In an analytical report, various organizational structures can be employed to present the findings effectively. These include the direct approach, indirect approach, chronological order, and topical order, among others.

Understanding Analytical report

When using the direct approach, you begin with the main conclusions or recommendations, followed by supporting evidence and analysis. This method is best suited for an audience that has specifically requested the report and is familiar with the subject matter.

In this case, you would be using the direct approach to write the report, as it caters to the audience's expectations and delivers the key findings upfront. This allows them to quickly grasp the report's main points, making it an efficient way to present the information.

Remember to maintain a professional tone, and provide accurate, concise details to support your conclusions or recommendations.

Learn more about Analytical report at

https://brainly.com/question/15684754

#SPJ11

which of the following are characteristics of repurchase agreements? check all that apply. their denominations are typically less than $10 million. there is no secondary market for repurchase agreements. banks and savings institutions are common borrowers and investors in repos, whereas money market funds are common investors in these agreements. the size of the repo market is approximately $10 trillion. suppose lucia initially purchased securities at a price of $9,810,000 while agreeing to sell them back to the original owner at a price of $10,000,000 at the end of a 6-month period. assuming a 360 day year, the yield (or repo rate) on this repurchase agreement is: 3.75% 3.87% 3.91% 4.14%

Answers

The repo rate is option b. 3.87%. The characteristics of repurchase agreement are:


- Banks and savings institutions are common borrowers and investors in repos, whereas money market funds are common investors in these agreements.
- The size of the repo market is approximately $10 trillion.

To calculate the yield or repo rate on a repurchase agreement, we need to use the formula:
Repo rate = (Interest paid / Purchase price) x (360 / Days to maturity)

In this case, the purchase price is $9,810,000 and the sell-back price is $10,000,000. The interest paid is the difference between the sell-back price and the purchase price, which is $190,000.

The days to maturity is 180 (since it's a 6-month period and we're assuming a 360-day year).

Using the formula, we get:
Repo rate = ($190,000 / $9,810,000) x (360 / 180)
Repo rate = 0.01936 x 2
Repo rate = 0.03872

So the repo rate is 3.87%. Therefore, the answer is: 3.87%.

Learn more about repurchase here: https://brainly.com/question/7627875

#SPJ11

5 pts consider a $1,000 par value bond with a 7% annual coupon. there are 20 years remaining until maturity. you have expectations that in 5 years the ytm on a 15-year bond with similar risk will be 7.5%. you plan to purchase the bond now and hold it for 5 years. your required return on this bond is 7.17%. how much would you be willing to pay for this bond today? (hint: find the expected bond value in 5 years)

Answers

You would be willing to pay $901.44 for the bond today.

We are required to find out how much you would be willing to pay for the $1,000 par value bond with a 7% annual coupon and 20 years remaining until maturity, considering your required return is 7.17% and the expected YTM on a similar 15-year bond in 5 years will be 7.5%.

In order to calculate the amount you would willing to pay, follow these steps:

1. Calculate the bond's annual coupon payment:

Coupon payment = 0.07 * $1,000 = $70

2. Calculate the present value of the coupon payments for the 5-year holding period:

PV of coupon payments = $70 * [(1 - (1 + 0.0717)^-5) / 0.0717] = $291.64

3. Calculate the expected bond value in 5 years, when the YTM is 7.5% and there are 15 years remaining until maturity:

Expected bond value = $70 * [(1 - (1 + 0.075)^-15) / 0.075] + $1,000 / (1 + 0.075)^15 = $887.91

4. Calculate the present value of the expected bond value at the end of the 5-year holding period:

PV of expected bond value = $887.91 / (1 + 0.0717)^5 = $609.80

5. Add the present value of coupon payments and the present value of the expected bond value to find the price you would be willing to pay for the bond today:

Bond price = PV of coupon payments + PV of expected bond value = $291.64 + $609.80 = $901.44

Learn more about Bond:

https://brainly.com/question/25596583

#SPJ11

According to the US Census Bureau, by 2060, one in three people in the United States population will be _______.
a. white
b. black/african American
c. asian
d. hispanic

Answers

The US Census Bureau predicts that by 2060, one in three people in the United States population will be D) Hispanic.

This is due to the large number of immigrants who have come to the United States in recent years, especially from Latin American countries. The Hispanic population is projected to increase from the current 18.8 percent to 31.2 percent.

Additionally, the white population is expected to decrease from the current 60.4 percent to 43.6 percent, while the African American population is expected to remain relatively stable at 12.4 percent of the population.

The Asian population is expected to increase from the current 5.9 percent to 8.2 percent of the population. Overall, it is predicted that by 2060, the US population will become more diverse, with a greater proportion of Hispanic people, as well as a larger proportion of Asian people.

Know more about Hispanic here

https://brainly.com/question/15119693#

#SPJ11

Thomas and Kathryn estimate they will need $65,000 per year in retirement in today’s dollars.
amount required in account at time of requirement: $1,414,657.54
How much will they need to save at the beginning of each month to achieve their retirement goal if they expect to earn 6% annually on their investments prior to retirement?
retirement in 35 years

Answers

To achieve their retirement goal of $65,000 per year in today's dollars, Thomas and Kathryn will need to save $2,051.45 per month at the beginning of each month.

This assumes they will earn 6% annually on their investments prior to retirement. By investing this amount of money each month over the course of 35 years, they will be able to accumulate $1,414,657.54. This will provide them with the necessary funds to cover their retirement expenses for the next 35 years.

Investing for retirement can be a daunting task. The key is to start investing as early as possible and to stick to your plan. Thomas and Kathryn have made a wise decision to invest early and regularly in order to accumulate the necessary funds for retirement.

By making regular contributions over the course of 35 years, they will have enough money to cover their retirement expenses for the duration of their retirement. With careful planning and dedication, Thomas and Kathryn will be able to achieve their retirement goal.

Know more about daunting task here

https://brainly.com/question/7082784#

#SPJ11

Felton Corp. will be found in violation of the Immigration Reform and Control Act, if it does not submit all completed Form I-9s to Immigration and Naturalization Service officers for approval.TrueFalse

Answers

True. The Immigration Reform and Control Act (IRCA) requires employers to verify the identity and employment eligibility of all employees hired after November 6, 1986, by completing Form I-9. Failure to comply with the IRCA requirements may result in fines and penalties.

Employers are required to keep Form I-9s for three years after the date of hire or one year after the termination of employment, whichever is later.
Felton Corp. could be found in violation of the IRCA if it fails to submit all completed Form I-9s to Immigration and Naturalization Service (INS) officers for approval. The INS is responsible for enforcing the IRCA and has the authority to request and review employer's Form I-9s to ensure compliance.
Employers who violate the IRCA may face civil and criminal penalties, including fines, debarment from government contracts, and even imprisonment. Therefore, it is crucial for employers like Felton Corp. to comply with the IRCA requirements and ensure that all Form I-9s are completed accurately and submitted to INS officers for approval.

for more such questions on  employment .

https://brainly.com/question/27404382

#SPJ11

True. The Immigration Reform and Control Act requires employers to verify the employment eligibility of their employees by completing Form I-9 and submitting it to the Immigration and Naturalization Service for approval.

Failure to do so can result in violations and penalties.  Felton Corp. will be found in violation of the Immigration Reform and Control Act if it does not submit all completed Form I-9s to Immigration and Naturalization Service officers for approval. This act requires employers to verify the identity and employment eligibility of their employees.

Learn more about employment here:

https://brainly.com/question/17459074

#SPJ11

carly donated inventory (ordinary income property) to a church. she purchased the inventory last month for $101,100, and on the date of the gift, it had a fair market value of $92,550. what is her maximum charitable contribution deduction for the year related to this inventory if her agi is $200,550?

Answers

Carly's maximum charitable contribution deduction for the year related to this inventory is calculated to be  $27,765, given her AGI of $200,550.

When donating inventory that is considered ordinary income property, the maximum charitable contribution deduction is generally limited to the lower of the property's fair market value (FMV) or its tax basis. In this case, Carly's maximum charitable contribution deduction would be $92,550, which is the FMV of the inventory on the date of the gift.

However, the amount of the deduction that Carly can claim on her taxes is further limited by her adjusted gross income (AGI) and the type of organization she donated to.

Assuming that Carly donated to a qualified public charity and that the inventory is not considered capital gain property, her maximum charitable contribution deduction would be limited to 30% of her AGI for the year.

So, Carly's maximum charitable contribution deduction would be:

$92,550 (FMV of inventory) x 30% (AGI limit) = $27,765

Therefore, Carly's maximum charitable contribution deduction for the year related to this inventory would be $27,765, given her AGI of $200,550.

Learn more about Fair market value (FMV) :

https://brainly.com/question/14447334

#SPJ4

Other Questions
the magnetic field in the interstellar space of our galaxy has a magnitude of about 1010 t. how much energy is stored in this field in a cube 10 light-years on edge? (for scale, note that the nearest star is 4.3 light-years distant and the radius of the galaxy is about 8 104 light-years.) Question 10 of 30The Medici family influenced the development of Renaissance art by:OA. founding the first national museum.B. conducting important scientific experiments.OC. selling Italian art in northern Europe.OD. providing patronage for Renaissance artists.SUBMIT 8Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $60.39. The firm just recently paid a dividend of $4.08. The firm has been increasing dividends regularly. Five years ago, the dividend was just $3.01. After underpricing and flotation costs, the firm expects to net $56.77 per share on a new issue. a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b. Determine the net proceeds, N., that the firm will actually receive. c. Using the constant-growth valuation model, determine the required return on the company's stock, ls, which should equal the cost of retained earnings, fr. d. Using the constant-growth valuation model, determine the cost of new common stock, in What are the side effects of thyroxin? Can someone help me with question ASAP please? Its for a presentation The ratio of union members to nonunion members working for a company is 4 to 5. If there are 140 nonunion members working for the company,what is the total number of employees? The nuclear localization signal is typically a(n) _______, rich in the amino acids_______.a. -helix; Pro, Lys, and Argb. -helix; Leu, Phe, and Glyc. short chain; Lys and Argd. short chain; Phy and Gly Drag each characteristic to the correct category. Viruses do not possess all the characteristics of life. Identify those characteristics that viruses display and those they don't displaymade up of one or more cellshas a defined boundary exhibits growth and development uses energy possesses internal organization eliminates waste in ancient mesopotamia, a(n) _____ was associated with kingly power, and was often seen in sculptures depicting rulers. Find two algebraic expressions for the area of each figure. First, regard the figure as one large rectangle, and then regard the figure as a sum of four smaller rectangles the nurse in the newborn nursery is performing admission vital signs on a newborn infant. the nurse notes that the respiratory rate of the newborn is 50 breaths per minute. which action should the nurse take In Case of EmergencyGrade 10, 1180LEnter Focus ModeA AAEvery effort will be made to notify parents immediately in the case of a medicalemergency. If parents cannot be notified, the school reserves the right to seektreatment for the student from an available physician at the nearest hospital.No sources were consulted in thecomposition of this passageWhich of the following conclusions is best supported bythe statements above?AParents will be the ones to select their child's physician in the case of a medicalemergency.BAs long as the school has attempted to reach parents in a medical emergency, itcannot be held responsible for the choice of physician.Parents who send their child to this school will, in the case of a medical emergency,lose control over the medical treatment of their child.DThe school believes that notifying parents is more important than providing urgentmedical treatment for students as quickly as possible.EThe school prioritizes its rights over the rights of parents. Workout 4614 give your answer as a whole number and a reminder Calculate the expected return on the stock NVDA (NVIDIA) based on the CAP-M equation. SHOW YOUR WORKTo calculate the expected return, remember that the CAP-M equation is as follows:ERstock= Rf+ RPm(stock)WhereRPm= RRmarket- RfRf= The Risk Free rate. Use the current interest rate for 10-year T-Bills.stock= The beta of the stock. This is listed on the Nasdaq page.RRmarket= The market return. Find out what the average return has been in an appropriate market and use the average return over the past five years for the index for that market (for example, if it is a large US stock, you could use the five year rate for the S & P 500).IF YOU DONT KNOW HOW TO DO THIS PLEASE DONT ANSWER IF YOU DONT WANT A BAD RATING. thank you!! PLS HELP ASAP!!! WILL GIVE BRAINLIEST!!The probability that the next Yankees game will be rained out is 2/5. The probability that they will win their next game is 3/4.What is he probability that it does not rain and the Yankees win?(A) 11/20(B) 5/9(C) 9/20(D) 1/4 if the largest four firms in an industry control less than half the market, their competitive concentration ratio group of answer choices would be considered to be especially high. would not be considered particularly high would not be considered particularly low. would be considered to be especially low. marketing managers need to plan for ______ that can retrieve products that customers no longer want. stp marketing includes three aspects: segmentation, targeting, and positioning. select one: true false Assignment Directions: Research some examples of organizations that experienced bad publicity and how they dealt with it.Write a paper detailing what you find. Assignment Guidelines: Your response should be at least 500 words in length.It must include citations for your references.It should have paragraphs of introduction and conclusion. a space station, which has a ringed compartment is rotating with initial velocity 0.10 r a d / s 0.10rad/s and angular acceleration 0.01 r a d / s 2 0.01rad/s 2 . what is the space station's angular velocity after 960 960 seconds? differentiate between the lytic cycle and the lysogenic cycle of bacteriophages. what are the strengths and limitations of each?