Market operation and its effect on Money Supply

July 8, 2024 No Comments

A: The open market operations conducted by the Federal Reserve affect the money supply of an economy through the buying and selling of government securities. When the Federal Reserve purchases government securities on the open market, it increases the reserves of commercial banks and allows them

On what days are the American stock exchanges closed?

July 8, 2024 No Comments

A: Similar to most companies, the major stock markets in North America are open for trading on normal business days only (Monday to Friday, except on holidays). In terms of holidays, both the New York Stock Exchange (NYSE) and the Nasdaq have very similar schedules to

The “effective date” is defined as:

July 8, 2024 No Comments

A: a. the date a security’s registration is approved – lasting for one year. b. the date the first transaction of an approved security takes place. c. the date an issuer and underwriter agree to bring a security to market. d. the date a security

The difference between Loan Syndication and a Consortium

July 8, 2024 No Comments

A: In a very general sense, a consortium is any group of individuals or entities that decides to pool resources toward a given objective. A consortium is usually governed by a legal contract that delegates responsibilities among its members. In the financial world, a consortium

To what extent does government regulation impact the electronics sector?

July 8, 2024 No Comments

A: Many electronics sector companies are tightly regulated. Environmental and product quality regulations are common around the world. Compliance with export laws requires additional resources. For many companies, these regulations incur substantial supply chain costs. Complying with government regulations may require the use of specialized

Were there any periods of major deflation in U.S. history?

July 8, 2024 No Comments

A: In historical contexts, the second half of the 20th century in the United States was unique because of how little deflation actually occurred. In fact, the dramatic and consistent price increases from 1950 to 2000 was unparalleled since the founding of the country. U.S.

What actions or policies can a government agency take to counteract and end stagflation in an economy?

July 8, 2024 No Comments

A: The standard macroeconomic remedies for inflation or unemployment are considered ineffective against stagflation. For this reason, there is no universal agreement on the best way to stop stagflation. The policy difficulty stems from the fact that the normal response to the components of stagflation

What are Common Examples of Monopolistic Markets?

July 8, 2024 No Comments

A: A monopoly, as a theoretical economic construct, prevails when barriers to entry exist because one firm can operate at a lower marginal cost than its competitors. The barriers can be legal or regulatory, economic, or geographic. Absent competitors, the monopoly firm can raise prices, restrict output and hurt consumers. Typical monopoly

What are common reasons for governments to implement tariffs?

July 8, 2024 No Comments

A: A tariff is a tax imposed by a governing authority on goods or services entering or leaving the country and is typically focused on a specified industry or product. It is meant to alter the balance of trade between the tariff-imposing country and its

What are examples of economic values in use today?

July 8, 2024 No Comments

A: The education sector is one of the areas that demonstrates the concept of economic value. Students attach different values to different academic courses based on perceived gain after graduation. A person may be willing to pay more tuition fees to study architecture than to

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