Answer:
A) relative advantage
Explanation:
A product's relative advantage over its competitors means the aspects at which one good or service is perceived as better or superior to other competing products. This concept is similar to comparative advantage, but from the consumer point of view. Consumers will value one product more because of its relative advantages over its competitors.
Answer:
e. As they are generally defined, money market transactions involve debt securities with maturities of less than one year.
Explanation:
Statement E, As they are generally defined, money market transactions involve debt securities with maturities of less than one year is true.
Statement A is not true. It is primary market transaction.
Statement B is not true. Individuals can also participate in derivatives market transactions.
Statement C is not true. The IPO market is a subset of the primary market.
Statement D is not true. It is a direct transfer of capital.
Answer and Explanation:
The Journal Entry is shown below:-
Investment in bonds is at face value, no question about discount or premium.
Investment is rendered from the time the bonds mature before 2023. Hence, it is an investment as Working for Profit "Held until maturity"
Jan 1, 2018
Bonds receivables Dr, $140,000
To Cash $140,000
(Being Investment in bonds is recorded)
30 June 2018
Cash Dr, $2,400
To interest income $2,400
(Being six months interest received is recorded)
31 Dec 2018
3. Cash Dr, $2,400
To interest income $2,400
(Being six months interest received is recorded)
Working note:-
Bond Value $140,000
Interest rate 4%
Interest earned half
yearly, effective rate
(4% × 6 ÷ 12) 2%
Half Yearly interest amount
($140,000 × 2%) $2,800
Increasing the reserve requirement is a powerful ANTI INFLATION weapon that reduces the overall supply of money.
In order to reduce the amount of money in an economy, the federal reserve can increase the reserve requirements of the commercial banks in the economy. This will reduce the amount of money that the banks can give out as loan and this will work to prevent inflation.