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Terms in this set (7)
Peoples desires that can be met by consuming goods and/or services
Human, natural, and capital resources used to make a good or provide a service
When there aren't enough resources for the wants people have
People, businesses and nations depend on the the resources, goods, and services of other people and places
Any place where buyers and sellers can do business
Something used to buy goods and services
When people or factories focus on (specialize) one product or service
Sets with similar terms
Grade 6 Economics
Lights, Camera, Business Unit Review
Suppose that XTel currently is selling at $40 per share. You buy 500 shares using$15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (i) $44; (ii)$40; (iii) $36? What is the relationship between your percentage return and the percentage change in the price of XTel?
The FINRA operates the TRACE (Trade Reporting and Compliance Engine) system, which reports over-the-counter secondary market trades of fixed-income securities. Go to the FINRA home page at www.finra.org and click on the link for Industry Professionals. Search (located at the top right) for the “TRACE Fact Book” and click the first link that appears. Find the detailed data tables and locate the table with information on issues, excluding convertible bonds. For each of the last three years, calculate the following: The percentage of bonds that were investment grade and the percentage that were high-yield.
A powerful monopoly is broken up into several smaller, competing companies. What are the costs and benefits for the general public?
Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of$150. a. What is the interest rate Ford is paying on the borrowed funds? b. Suppose the market interest rate rises from 3% to 4% a year after Ford issues the bonds. Will the value of the bond increase or decrease?