Q: Investment projects can be viewed as analogous to bank loans. True or false?
A: An investment project is a proposal that includes information on the expenditure of the planned…
Q: Lowering the taxes on income can help in expanding the activities in the financial market. True or…
A: Tax in the compulsory payment made by the individual or institution to the government without…
Q: A government takes action to reduce the size of its budget deficit. This action will cause the…
A: Meaning of Budget Deficit: The term budget deficit refers to the situation under which the…
Q: How are financial firms able to make profits? Under what circumstances are their profits limited?
A: Financial companies profit from investing their funds in firms that have the potential to grow and…
Q: Will Increase in government spending financed by borrowing help promote a strong recovery from a…
A: A recession is a period of an economic downturn that is caused due to the depletion of aggregate…
Q: The financial system must ensure the availability of efficient credit facilities to allow greater…
A: Credit Facilities: Credit facilities are loans that businesses take to run their operations. A…
Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods
A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…
Q: Explain the role that financial intermediaries play in an economy by giving a practical example.
A: In an economy, financial intermediaries play an important role by acting as a bridge between savers…
Q: Which of the following is not a primary participant in the financial marketplace? a. governments b.…
A: A financial market is a place where stocks, bonds, and money are exchanged.
Q: What is the main objective and sources of public finance? According to macro economics
A: Public Finance is referred to as government activity that includes taxation, government spending and…
Q: Is an economy both social and a financial system?
A: An economic system, also known as an economic order, is a method of producing, allocating resources,…
Q: analyzes the responsibility of the financial system in the demand for investment versus the supply…
A: The financial system's primary economic role is to transfer cash from net savers (those who spend…
Q: Suppose the government starts running budget deficits without raising taxes or printing money. What…
A: 1. When the government start running budget deficit without raising the taxes, it will make them to…
Q: Suppose that Dmitri, an economist from a research institute in Texas, and Frances, an economist from…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: True or False? Adam Smith believed that his concept of an “invisible hand” guiding human behavior…
A: Adam Smith advocated the concept of free market with invisible hand, in contrast to Keynes who…
Q: What is the relation between social economic and the financial crisis? What is the impact of…
A: Solution: Economics: It is the study of understanding different aspects of economy. Economy: It is…
Q: what vital role do demand and supply play in the stock exchange?
A: The Law of demand states the inverse relationship between the quantity demanded of a good and the…
Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…
A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…
Q: many people keep their savings in the piggy banks, it does not help the financial system to function…
A: Banks and other financial institutions give amazing chances to saving and contributing by people,…
Q: Why is it so important to an economy to have fully developed financial markets?
A: Financial markets are those markets in which creation and trading of financial assets take place .…
Q: All the participants in the financial system can be both demanders and suppliers of funds. A. the…
A: In a financial market, those who save money are on the supply side and those who borrow money are on…
Q: If junk bonds are called "Junk" Why then would as an investor buy Junk bonds? Explain your reasons…
A: Junk bonds are bonds which carry a higher default risk than most corporate and government issued…
Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?
A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…
Q: What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give…
A: Financial market disruption caused by decreasing asset values and insolvency among debtors and…
Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?
A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…
Q: The government, business and household sectors are all suppliers of funds into the financial system.…
A: A financial system is a platform for transactions related to funds between financial market…
Q: During The 2007-2008 financial crisis, Sould government purchase the devalued paper, so that…
A: Devaluation is the reduction in official value of the home currency in terms of other currencies.
Q: What will happen in the bond market if the government imposes a limit on the amount of daily…
A: If the government imposes a limit on daily transactions, then the ones who buy and sell in the…
Q: Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a…
A: Answer:
Q: Even during a financial recession, consumers tend to increase spending in _______
A: A downturn is a time of declining monetary and economic performance across a whole economy that can…
Q: An efficient financial market means transaction costs. True or False?
A: Transaction costs are the costs associated with purchasing or selling a product or service.
Q: How should a yield curve look like in order for lenders to be encouraged to start lending again?
A: Yield curve: Yield curve is the graphical representation of different yield (interest rates) that a…
Q: Why has the government pumped billions into bank bailouts to prevent them from collapsing?
A: Bank bailouts refer to a situation when government or corporation injects funds into a bank that is…
Q: Naked Economics: Undressing the Dismal Science Book by Charles Wheelan The most accurate way to…
A: Nacked Economics Nacked economic is a book that is based on the economy and economic facts. It…
Q: Monetary and fiscal policies directly affect the level of activities in the financial market. Is…
A: Monetary and fiscal policies directly affect the level of activities in the financial market. Is it…
Providing tax shelters through investment is one of the main functions of the financial system. *
Is it true or false?
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- All the participants in the financial system can be both demanders and suppliers of funds.A. the statement is incorrectB. the statement is correct because the individuals, government and business can be suppliers of funds.C. the statement is false because only the individuals supply fundsD. the statement is correct but only the government can be a demander of fundsE. all the above choices are correctWhat happens when the "Tax Ratio" of the commercial banks in the positive figure?Provide examples on how individuals may get funding from the capital markets.
- Is the stock market "out of control?" How can the poor benefit from this financial institution?What effect might a fall in stock prices have on businessinvestment?Which of the following explains the relevance of financial institutions? a. Financial institutions spur economic activity by providing credit for business expansion. b. Financial institutions create profits for depositors. c. Financial institutions allow governments to print money. d. Financial institutions provide the main source of funding for start-ups.
- One of the tasks of a Financial System include providing affordable loans to all consumers and firms.True or FalseSuppose there is an increase in the interest rate in the financial markets. What effect will this have on income? Use a diagram to support your answer.It analyzes the responsibility of the financial system in the demand for investment versus the supply of savings.