What are some roles of an investment bank?

June 30, 2024 No Comments

A: Investment banks serve a number of purposes in the financial and investment world, including underwriting of new stock issues, handling mergers and acquisitions, and acting as a financial advisor. Other roles of investment banks include asset management for large investment funds and personal wealth

What are the advantages and disadvantages of a command economy?

June 30, 2024 No Comments

A: A command economy is one in which a centralized government controls the means of production. The government determines what is produced, how it is produced and how it is distributed. Private enterprise does not exist in a command economy. The government employs all workers

What are the advantages and disadvantages of the International Monetary Fund?

June 30, 2024 No Comments

A: Established following World War II to help with post-war recovery, the International Monetary Fund (IMF) serves as a lender to modern governments and an overseer of international financial markets. In its infancy, the IMF was only responsible for supervising pegged exchange rates, part of

What are the advantages of using a simple random sample to study a larger population?

June 30, 2024 No Comments

A: Simple random sampling is a method used to cull a smaller sample size from a larger population and use it to research and make generalizations about the larger group. It is one of several methods statisticians and researchers use to extract a sample from

What are the characteristics of a monopolistic market?

June 30, 2024 No Comments

A: A monopolistic market is a market structure with the characteristics of a pure monopoly. A monopoly exists when there is only one supplier of a good or service, but many consumers. In a monopolistic market, the monopoly has full control of the market, so it sets the price

What are the differences between global depositary receipts (GDRs) and American depositary receipts (ADRs)?

June 30, 2024 No Comments

A: A global depositary receipt (GDR) is a bank certificate issued in multiple countries for shares in a foreign company. The shares of a GDR trade as domestic shares. They are offered for sale globally through various banks. A GDR a financial tool that is

What are some examples of the law of demand in real markets?

June 30, 2024 No Comments

A: The law of demand posits a negative relationship between the price of a good and quantity demanded if all other factors are held constant. This cornerstone of microeconomics explains that consumers of a good or service will consume more if the price is lower.

What are leading, lagging and coincident indicators?

June 30, 2024 No Comments

A: An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic statistics published by accredited sources, such as the various departments in the U.S. government, are indicators. Some of the popular indicators they put out include

What are some historic examples of hyperinflation?

June 30, 2024 No Comments

A: Hyperinflation is an extreme case of monetary devaluation that is so rapid and out of control that the normal concepts of value and prices are meaningless. Hyperinflation is often described as inflation exceeding 50% per month, though no strict numerical definition exists. This catastrophic

What are some advantages of a market economy over other types of economies?

June 30, 2024 No Comments

A: A market economy is a system in which the economic decisions and the prices of goods and services are determined by supply and demand. The assumption behind a market economy is that supply and demand are the best determinants for an economy’s growth and

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