Who discovered the law of supply and demand?

July 8, 2024 No Comments

A: The law of supply and demand, which dictates that a product’s availability and demand impacts its price, was noticed in the marketplace long before it was mentioned in a published work. Philosopher John Locke is credited with one of the earliest descriptions of this

Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, for the NYSE or for brokerage firms?

July 8, 2024 No Comments

A: Before we address this question, let’s review what specialists do. Specialists are people on the trading floor of an exchange, such as the NYSE, who hold inventories of particular stocks. A specialist’s job is not only to match buyers and sellers, but also to

Who sets fiscal policy, the president or congress?

July 8, 2024 No Comments

A: In the United States, fiscal policy is directed by the executive and legislative branches. In the executive branch, the two most influential offices belong to the president and the Treasury secretary, although contemporary presidents often rely on a council of economic advisers. The U.S.

Who sets the global standard to stop money laundering and how is it implemented?

July 8, 2024 No Comments

A: The Financial Action Task Force (FATF) sets the international standard for fighting money laundering. Formed in 1989 by leaders of countries and organizations around the world, the FATF is an international body of governments that sets standards for stopping money laundering and promotes the

Who uses bills of exchange?

July 8, 2024 No Comments

A: Bills of exchange primarily act as promissory notes in international trade; the seller, or exporter, in the transaction addresses the bill of exchange to the buyer, or importer. A third entity, typically a bank, is party to many bills of exchange to help guarantee

Why are most multinational corporations either from the US, Europe or Japan

July 8, 2024 No Comments

A: The United States, Japan and member states of the European Union are developed countries whose infrastructures and well-established financial markets are conducive to the operation and potential success of multinational corporations (MNCs). The largest number of MNCs are based in the U.S. Many of

Why are the factors of production important to economic growth?

July 8, 2024 No Comments

A: Real economic growth only comes from increasing quality and quantity of the factors of production, which consist of four broad types: land, labor, capital and entrepreneurship. Saving and discovery are the two basic ways to improve or increase the factors of production. Saving occurs

Why are there no profits in a perfectly competitive market?

July 8, 2024 No Comments

A: The “perfectly competitive market” is an abstract theoretical construction used by economists. It serves as a benchmark to compare existing competition in real markets. Under perfect competition, firms can only experience profits or losses in the short run. In the long run, profits and

Why did the New York Stock Exchange report prices in fractions before it switched to decimal reporting?

July 8, 2024 No Comments

A: Before April 9, 2001, when the Securities and Exchange Commission ordered all U.S. stock markets to switch to the decimal system, prices were reported and stocks were denominated in fractions—in one-sixteenths to be exact. While it seems silly that it took so long for the

Why do banks securitize some debts, and how do they sell them to investors?

July 8, 2024 No Comments

A: Banks may securitize debt for reasons that include risk management, balance sheet issues, greater leverage of capital and to profiting from origination fees. Debt is securitized by the pooling of certain types of debt instruments and then creating a new financial instrument from the

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