When savers buy securities from borrowers without assistance

Assignment Help Financial Management

Reference no: EM132057310

1. Joe E. Conomist purchased 100 shares of IBM corporation in 2011 for $10,000. In 2014, Joe sold these shares to Sally Forth for $15,000. How would this sale of stock in 2014 affect IBM corporation?

- IBM makes $5,000 in profit.

- IBM invests $5,000 in capital equipment

- IBM suffers a loss of $5,000.

- IBM is unaffected.

2. When savers buy securities from borrowers without the assistance of any third-party, they are using

direct finance

indirect finance

a secondary market

a financial intermediary

3. The quantity demanded of a security is QD= 220 - 0.2b and the quantity supplied of it is QS=100 + 0.2b. The equilibrium price of the security is

- $300

- $280

- $420

- $500

4. Higher the rate of inflation

- slower will be the rate at which money will lose value

- lower will be the will to spend money

- lower will be the will to hold money

- lower will be the will to invest money

Reference no: EM132057310

Questions Cloud

Statements is true of perpetuity : Which of the following statements is true of a perpetuity. A debt security with just one payment at a future date is referred to as.

Use the bootstrap method to calculate all zero rates : Use the bootstrap method to calculate all zero rates. What is the price of a 3 year 5% coupon bond? What is its yield?

Which factors can negatively impact organization shareholder : Which factors can negatively impact a organization shareholder ? Which of the factors are more significant.

Calculating inflation and project cash flows : Carlyle Chemicals is evaluating a new chemical compound used in the manufacture of a wide range of consumer products.

When savers buy securities from borrowers without assistance : When savers buy securities from borrowers without the assistance of any third-party, they are using

How much will you invest in each : The risk-free rate is 4%. You can invest in Bay Corporation and City Limited. How much will you invest in each?

Find the equivalent annual cost of both machines : he annual operating cost of the new machine is $9000. Using an interest rate of 15%, find the equivalent annual cost of both machines.

Difference between currency board and dollarization : What is the difference between a currency board and dollarization?

What needs are being met by the product purchase : What needs are being met by the product purchase? (Dyson Cordless Vacuum Cleaner) What are the benefits to the consumers?

User Account

All Pages