Will over there be an impact on interest prices if brokerage commissions on stocks fall? define your answer.

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Yes, interest rates will rise. The reduced commission ~ above stocks renders them more liquid than bonds, and the need for bonds will fall. The need curve B-d will therefore shift to the left, and also the equilibrium bond price falls and also the interest rate will rise.
Would girlfriend be an ext or less willing come buy a re-publishing of microsoft stock in the following situations:1. Your riches falls:2. You intend the share to appreciate in value:3. The bond industry becomes an ext liquid:4. You suppose gold to evaluate in value5. Price in the bond market become an ext volatile
​"No one who is​ risk-averse will ever before buy a security that has a reduced expected​ return, more​ risk, and less liquidity 보다 another​ security." Is this statement​ true, false, or​ uncertain? A.False since by diversifying or hedging your​ portfolio, that is feasible to protect against risks and increase your expected return.B.True due to the fact that for a​ risk-averse person, those features make a security much less desirable.C.Uncertain since there might be other crucial characteristics to take into consideration when purchasing a security.
Will there be an impact on interest prices if brokerage rose on stocks​ fall?A.​Yes, interest rates would rise due to the fact that people would desire to hold an ext stocks and also fewer​ bonds, i beg your pardon would boost the demand for bondsB.​Yes, interest prices would fall due to the fact that stocks would have actually a relatively higher rate the return than​ bonds, i m sorry would reduce the demand for bondsC.​No, interest prices would stay the same since the brokerage commissions would certainly only influence the stock marketD.​Yes, interest rates would rise because stocks become an ext liquid than​ before, i m sorry would minimize the need for bonds
What impact will a sudden rise in the volatility of gold prices have on interest​ rates?A.Interest prices will increase due to the fact that bonds will certainly become relatively more​ risky, i m sorry decreases the demand for bondsB.Interest rates will increase due to the fact that bonds will certainly become reasonably less​ risky, which increases the need for bondsC.Interest prices will decrease because bonds will become fairly less​ risky, which rises the need for bondsD.Interest prices will decrease since bonds will certainly become reasonably more​ risky, i beg your pardon decreases the need for bonds
What will occur to interest prices if the public suddenly expects a big increase in stock​ prices?A.Interest prices will rise because the expected boost in share prices raises the liquidity that stocks relative to bonds and so the demand for bond decreasesB.Interest prices will fall because the expected boost in share prices raises the liquidity that stocks loved one to bonds and so the need for binding decreasesC.Interest rates will rise due to the fact that the expected rise in stock prices raises the expected return ~ above stocks loved one to bonds and so the need for binding decreasesD.Interest rates will fall since the expected rise in stock prices raises the meant return ~ above stocks family member to bonds and so the need for binding decreases
The number to the right depicts the link market.Suppose over there is a downward revision the inflation expectations. Display the impact on the shortcut market.1. Utilizing the line drawing tool​, show the effect on bond demand. Properly label her line.2. Using the line illustration tool​, display the impact on bond supply. Properly label your line.3. Making use of the allude drawing tool​, show the brand-new equilibrium link price and quantity. Label the point​ "2".Carefully monitor the instructions​ above, and also only attract the required objects.
Based top top empirical​ evidence, since interest prices _______________ as soon as the economy is​ expanding, interest rates are said to it is in ___________________.
Using the liquidity preference​ framework, as soon as the economy​ expands:A.the need for money will​ increase, changing the money need curve to the leftB.the need for money will​ decrease, shifting the money demand curve to the rightC.the demand for money will​ decrease, changing the money demand curve to the leftD.the need for money will​ increase, moving the money demand curve to the right
What is the opportunity cost of stop ​$1,500 in cash if the appropriate interest price is 8 ​percent?
If attention rates​ rise, this opportunity cost will ___________, and individuals will organize _____________ cash balances.

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If the following chair the the commonwealth Reserve Board has actually a reputation for advocating an also slower price of money expansion than the current​ chair, what will take place to interest​ rates?A.Slower money development will cause a liquidity​ effect, which will certainly raise interest​ rates; however, the lower​ income, price​ level, and also inflation will have tendency to reduced interest rates.B.Slower money development will bring about a liquidity​ effect, i beg your pardon will lower interest rates.​ Moreover, the lower​ income, price​ level, and also inflation will reinforce the decrease in attention rates.C.Slower money development will bring about a liquidity​ effect, i m sorry will lower interest​ rates; however, the lower​ income, price​ level, and also inflation will tend to raise interest rates.D.Slower money growth will bring about a liquidity​ effect, which will certainly raise attention rates.​ Moreover, the lower​ income, price​ level, and inflation will certainly reinforce the boost in attention rates.
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