What is the downtick-uptick rule on the NYSE?

July 8, 2024 No Comments

A: To ensure orderly markets, the New York Stock Exchange (NYSE) has a set of restrictions that it can implement when experiencing significant daily moves, either up or down. Many of these restrictions are executed when the market experiences a significant downturn, although there is

What is the functional difference between GDP and GNP?

July 8, 2024 No Comments

A: Gross Domestic Product (GDP) and Gross National Product (GNP) both try to measure the market value of all goods and services produced for final sale in an economy. The difference is how each term interprets what constitutes the economy. GDP refers to and measures

What is the history behind the opening and closing bells on the NYSE?

July 8, 2024 No Comments

A: Similar to the school bells that most of us heard during our school days, the New York Stock Exchange’s (NYSE) opening and closing bells mark the beginning and end of each trading day. More specifically, the opening bell is rung at 9:30 a.m. to mark the

What is the history of corporations in America?

July 8, 2024 No Comments

A: The first American corporations were developed in the 1790s, almost instantly becoming key institutions in the economy. Though corporations existed outside the United States in the early 19th century, particularly in Great Britain and the Netherlands, no country took to corporate development like America.

What is the key difference between the participation rate and the unemployment rate?

July 8, 2024 No Comments

A: The participation rate and unemployment rate are economic metrics used to gauge the health of the U.S. job market. The key difference between the two indicators is the participation rate measures the percentage of Americans who are in the labor force, while the unemployment

What is the marginal utility of income?

July 8, 2024 No Comments

A: Very simply, the marginal utility of income is the change in human satisfaction resulting from an increase or decrease in an individual’s income. It says that people who get raises tend to be more satisfied than they otherwise would have been, and people who

What is the minimum liquidity coverage ratio that a bank must have from 2016 to 2019 under Basel III?

July 8, 2024 No Comments

A: The minimum liquidity coverage ratio that banks must have under the new Basel III standards are phased in beginning at 70% in 2016 and steadily increasing to 100% by 2019. The year-by-year liquidity coverage ratio requirements for 2016, 2017, 2018 and 2019 are 70%,

What is the point of agricultural subsidies?

July 8, 2024 No Comments

A: Every five years, new legislation is introduced and passed through the U.S. Congress to subsidize farmers and agricultural products. These bills provide benefits such as cash, minimum prices and crop insurance programs. Most academic economists and policy analysts oppose agricultural subsidies, but that seems

What is the purpose of the Volcker Rule?

July 8, 2024 No Comments

A: The Volcker rule limits two main types of activities by large institutional banks. Banks are prohibited from engaging in proprietary trading activities and from owning interest in covered funds, generally defined as hedge funds and private equity funds. The rule is listed in Section

What is the relationship between human capital and economic growth?

July 8, 2024 No Comments

A: Human capital and economic growth have a strong relationship. Human capital affects economic growth and can help to develop an economy through the knowledge and skills of people. Human capital refers to the knowledge, skill sets and motivation people have, which provide economic value.

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