Bonds are not better than GIC(s). Bonds offer lower interest rate, so low that it is better to just invest our money in a TD Savings Account. Mostly investors do not even consider Bonds as there more much better investment opportunities. GIC(s) offer more interest rates, more options and so there is more demand for GIC(s). 7) What is the most popular age group for buying GICs?
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly. Plus, the maintenance required to stay public is too expensive for smaller companies, forcing companies to look elsewhere to raise capital. Rising costs persuade large numbers of companies to exit the public markets to sidestep SEC regulation, creates two problems. First, the overall economy could suffer because corporations limit investment projects due to the higher-cost sources of capital to fund potentially new operations. Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important.
In addition to this, the idea of mercantilism meant that American trade was protected by Britain, and this was advantageous as Britain was one of the strongest economic powers in the world at the time. These reasons support the statement that the relationship was ‘peaceful and harmonious’ because both parties were substantially benefitting from one another’s trading opportunities. On the other hand, there
Or in other words Inflation occurs when the supply of money far exceeds the supply of goods and services. The functions of money are to serve as a medium of exchange, a unit of account, and a store of value. Inflation mainly affects the ability of money to serve as a store of value, since inflation erodes money's purchasing power, making it less attractive as a store of value. Money also isn't as useful as a unit of account when there's inflation, because stores have to change prices more
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Economists still argue whether Reagan’s actions were helpful or harmful to the United States economy. They question whether it was Reagan s policies that pulled the United States out of the 1982 recession, or whether it was new money being poured into the economy by the Federal reserve. Also many people believe that Reagan’s policies are having more effect on the economy today than they did during his presidency from 1980 to 1988. I feel that Reagan and his policies were extremely helpful to the economic status of our country. I feel that even though his policies produced a large deficit, his other improvements, such as increased GDP, more jobs, and pulling out of a recession, helped to make Reagan’s time as president a success.
Greed in Gatsby In this day and age, cash is a very essential resource to have. One needs to have at least enough to stay on, though excellent quantities are more suitable. In The Great Gatsby, by F. Scott-Fitzgerald, having a huge sum of cash is not enough. It is also the way you obtain the cash that issues. Gatsby and Tom both have a lot of cash yet Daisey choices one over the other, not because of the distinction in the quantity they have, but because of the way in which it is accomplished.
At the same time, there are increasing concerns about the fact that concentration in the financial system has increased; big banks may feel less competitive pressure to lend – despite the fact that they are highly profitable. The “Too Big to Fail” bailout of our big banks will have the most resounding effect on economic future. The latest quarterly report from the Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program (TARP), is the best official articulation yet of why Too Big To Fail is here to stay in the United States – and we are likely on the path to these institutions (Johnson & Kurtz, 2011) becoming Too Big To Save. There are moral hazard and potentially dire consequences associated with the continued presence of financial institutions that are deemed ‘too big to
Therefore, understanding exactly how monetary policies will affect the economy is extremely important. Monetary policies generally will raise or lower interest rates, which will ultimately affect individuals and business demand for goods and services. Unfortunately, many individuals do not understand the entire concept surrounding the Federal Reserve real interest rate. For example, any magnitude of decreasing the real rates will lower the cost of borrowing; this will increase investment spending, and influence individuals to buy durable goods. These items may consist of automotive, recreational vehicle, homes, and higher educational opportunities.