Important source of external funds used to finance business

Assignment Help Business Economics

Reference no: EM13984074

One of the basic facts of financial markets is that financial intermediaries, particularly banks, are the most important source of external funds used to finance business. Explain the reasons with 3~4 paragraphs from what we learned in Chapter 8 from Money, Banking and Financial Market by Mishkin, Frederic S.

Reference no: EM13984074

Questions Cloud

Autonomous aggregate expenditures decreases : Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income.

Experiencing decrease in home prices and consumer wealth : During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. What components of aggregate demand were aff..

What is the next best alternative method : In data smoothing, sometimes one can use the simple exponential smoothing method. What are the main disadvantages of this method? Then, what is the next best alternative method? Why? Explain.

Aggregate demand and supply analysis to predict the effects : Suppose the President gets Congress to pass legislation that encourages investment in research and the development of new technologies. Assuming this policy leads to a positive productivity change for the U.S. economy, use aggregate demand and supply..

Important source of external funds used to finance business : One of the basic facts of financial markets is that financial intermediaries, particularly banks, are the most important source of external funds used to finance business. Explain the reasons with 3~4 paragraphs from what we learned in Chapter 8 from..

Each firm in competitive market has a cost function : Each firm in a competitive market has a cost function of C=16+q^2, so its marginal cost function is MC=2q. The market demand function is Q=24-p. Determine the long-run equilibrium price, quantity per firm, market quantity, and number of firms.

Price elasticity of demand at equilibrium price and quantity : Consider the fictitious good Derp. The demand for Derp is Q=1200-2P. Suppose the supply of Derp is given by Q=-600 +2P. What is the equilibrium quantity of Derp? What is the price elasticity of demand at the equilibrium price and quantity?

How many guitars will be sold after the tax is imposed : Suppose you are hired by the Martin Guitar Company as an economic consultant. You estimate the demand to be Q=8000-2P. Suppose the supply of Martin Guitars is given by Q= -2000+3P. Suppose a per-unit excise tax of $40 per guitar is levied on the cons..

What is the equation of the expansion path for a glass firm : Draw an accurate figure showing how the glass firm minimizes its cost of production. What is the equation of the (long-run) expansion path for a glass firm? Illustrate this path in a graph. Derive the long-run total cost curve equation as a function ..

User Account

All Pages