why do we need banks and financial institutions

Q: Calculate the GDP using the Expenditure Approach Item Value Consumption Compensation of labor (salar...

A:   Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation u...

Q: The Phillips curve describes the relationship between which two variables? the money supply and inte...

A: The Phillips curve equation is πt - πt-1 = (μ+z) - αut  

Q: Private firms that accept deposits and extend loans are known as a) mutual funds. b) banks. Oc) secu...

A: Mutual funds is that types of funds in which investors invest in  many type of Assets,  in generally...

Q: 1. Would you consider spending to make a school or an office building earthquake-proof a good invest...

A: 1 In order to create the earthquake resistant in the building and the schools is to build an undergr...

Q: Explain why the existence of financial institutions can allocate financial resources better!

A: Good financial sectors mean banks and financial institutions have a major role to play in the health...

Q: To affect the level of potential output, the monetary policy and fiscal policy must Question 1 opti...

A: Monetary policy and fiscal policy are implemented to ensure economic growth and maintain balance.

Q: Exercise Number 1 Taking the data of the following table answer 1 through 3. Indicators of Puerto Ri...

A: Answer: (1). Let us first find the personal disposable income at constant prices:Personal disposable...

Q: vantage of a fixed exchange rate system is that governments are required to constantly intervene in ...

A: A fixed exchange-rate is a system applied by an administration or national bank that ties the countr...

Q: The federal government currently uses many forms of taxation, both direct and indirect, to raise rev...

A: Direct taxes are taxes that are imposed on natural persons and they are based on the taxpayer’s abil...

Q: firm’s product b. Determine the profit-maximizing level of production and price. Quantity: ? Pric...

A: As subparts are more than 3, First 3 subparts are answered. 

Q: Due to he learning effect it gets harder to produce each new product. Select one: O True O False

A: The learning effect describes the process by which education increases productivity and wages. In in...

Q: A) Is global interstate system important? (B) What is the importance of market integration in global...

A: Globalization basically refers to an concept which basically highlights the trade between tge two or...

Q: Use the given scenarios and the information you have learned about Fiscal and Monetary policy to com...

A: Answer: Monetary policy: Federal reserve can use the tools of monetary policy to correct it. The fou...

Q: For the cash flows shown, use an annual worth comparison and a MARR of 10% per year to determine the...

A: AW method:When comparing alternatives, the AW method is commonly used.AW means that all incomes and ...

Q: All other things being equal, an decrease in the oil price will cause: a. the AD to shift up to the ...

A: The aggregate demand is the total value of all the goods and services that are being produced in an ...

Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...

A: The investment is considered fruitful when the present value of benefits exceeds the present value o...

Q: The relationship between international aid and economic growth for less-developed countries is O a) ...

A:

Q: A recent government study reported that a college degree is worth an extra P150,000 per year income ...

A: The degree will fetch yearly extra income of 150,000 for 40 years . And it will fetch every year for...

Q: A technological advancement will cause O a) the production function to shift downward. O b) the prod...

A: Production function creates a relationship between input and output of goods.    

Q: A certain equipment costs P 7,000 and a salvage value of P 350 at the end of its economic life.  Usi...

A: We have first cost of the equipment FC=7000 Salvage value =350 Book value at the end of 4 years is 2...

Q: Is this possible or not that the rate of interest fall to zero? 300 words

A: Answer: Aswe know that It's theoretically feasible to have a 0% interest rate. As previously said, p...

Q: 6.  Myrvin made a 12-percentage-point investment of PHP10,000.00. According to the 72-year rule, it...

A: The rule of 72 means says that any sum of money will take (72/Interest Rate) years to double.

Q: Provide a definition of “technological capability” and “social capability”, and describe the differe...

A: In an economy, capabilities explains the ability of the society to deal with the specfiic issue to i...

Q: Price $11.00

A: Trade is the exchange of goods and services between the buyer and seller at a mutually agreed price ...

Q: You are the CEO of British Petroleum (BP), one of the world’s largest oil companies. You are looking...

A: Potential hazard is basically a threat to one's health or safety that may arise if preventative meas...

Q: What does the Powerbar model tell us about how creativity fits into a market economy?

A: Ans-    Market power model means a broader market which existing rebranding bar.  It is constant wit...

Q: Joe is a college football player considering whether to attend another year of college or to enter t...

A: When talking about marginal analysis in economics, it refers to analyzing the cost and benefit assoc...

Q: A contractor must choose between buying or renting a crane for the duration of a 5 year construction...

A: Given:- MARR=8% or 0.08 Crane cost=$520,000 Maintenance cost=$210,000 Crane renting=$310000 Please f...

Q: The economy of Morin is shown in the figure below. The Economy of Morin AD AS 170- 150- 130- 110- 90...

A: a. Potential GDP is denoted by the Long-run Average Cost. It is given that potential GDP (Y*) is $58...

Q: Is a Function of Price A company produces an electronic timing switch that is used in consumer and c...

A: Answer: Note: we are strictly forbidden to provide handwritten solutions from the company side. Give...

Q: )Which of the following changes will shift the consumption function​ upward? Part 2 A. an increase i...

A: The equation of consumption function is given as C= C+cY Where C is autonomous consumption i.e. does...

Q: Assuming inriation is hegative (deriation), then the homir st rate O a) must always be smaller than ...

A: Deflation is when there is below 0% decrease in the inflation rate.  

Q: nd the monthly house payments for a loan of P188,000 at 6.74% for 15 years

A: The monthly payment will depend on the loan tenure and rate of interest on home loan.

Q: P2. Suppose that in Japan, without a tariff 10,000 cars will be sold per year at an equilibrium pric...

A: Tariff is a tax imposed by government by one country on the goods and services and imported from ano...

Q: Suppose the aggregate consumption function is represented by C = £1,000 + 0.5*YD, where YD is dispos...

A: Given:- Consumption; C=£1000+0.5YD where; C= Consumption function YD= Disposable Income At equilibri...

Q: Diminishing marginal product is also known as a) net investment. b) diminishing returns. c) deprecia...

A: Net investment is the difference between total amount of money spend on capital and the depreciation...

Q: The market (inverse) demand function for a homogeneous good is P(Q) = 10 – Q. There are two firms: f...

A: Total cost is the expenditure of converting raw material into finished goods. It means the expenditu...

Q: what is the 4 factor that affects the level of interest rate? and how does each one work?

A: The cost of lending money is represented by an interest rate. On the other hand, it is a reward for ...

Q: Suppose that you have a job paying $50,000 per year. With a 5% probability, next year your wage will...

A: Given  The income per year =$50,000 There is a 5% chance that the next year the wage is reduced to $...

Q: An example of an institution that will increase the expected payoff of investment is O a) a more eff...

A: The amount required to repay a loan in full, including all accumulated interest and fees, as well as...

Q: 4. (Table) Based on the table, what price does J Output Marginal Cost Total Revenue 1,200 1,300 1,40...

A: Total Revenue = Price * Output => Price = Total Revenue / Output From the given table information...

Q: Explain THREE (3) functions of the Executive power of Malaysia with the examples from Movement Contr...

A: Functions of the executive power of Malaysia with the examples from movement control order 2020-21 a...

Q: Now suppose that droughts in the Southeast and floods in the Midwest substan- tially reduce food pro...

A: The United States central banking system is called the Federal Reserve System (abbreviated as Fed or...

Q: 2) If the expected return on U.S. T-Bonds falls from 3 to 2 percent and the expected return on corpo...

A: Given, The expected return on U.S. T-bonds changes from 3 to 2 percent and The expected return on co...

Q: Perfect Competition:  What are the key features of a perfectly competitive market?   Many buyers and...

A: Question 1 is only answered. Post the remaining question again.      

Q: 3. The nation of Routarou is able to produce turnips and potatoes in combinations represented by the...

A:

Q: Because of the peso devaluation, a car costing P150,000 is to be purchased through a find company in...

A: We have, Car price = P150,000 Down payment = P40,000 Loan amount = P150,000 − P40,000 = P110,000 Mon...

Q: Directions: Use the given scenarios and the information you have learned about Fiscal and Monetary p...

A: Given information Increase in price by 4% GDP increase by 5% Unemployment rate =1.3%

Q: Chandra's Bookstore wants to find the price for maximum profit. The expense equation is E = = -3400p...

A:

Q: Stocks are thne type of securities that O a) represent ownership of the firm by the holders. O b) ha...

A: A stock is basically a type financial instrument that reflects a company's ownership stake.When you ...

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: