Suppose financial institutions didn’t exist but you urgently needed a loan. Where would you most likely get this loan? Using Core Principles, identify an advantage and a disadvantage this arrangement might have over borrowing from a financial institution.
Answer to relevant QuestionsTo begin using FRED, plot the consumer price index (FRED code: CPIAUCSL) and find the date and level of the latest observation. Then plot the inflation rate measured as the percent change from a year ago of this index.You are the owner of a small sandwich shop. A buyer may offer one of several payment methods: cash, a check drawn on a bank, a credit card, or a debit card. Which of these is the least costly for you? Explain why the others ...Suppose a significant fall the price of certain stocks caused the market makers in those stocks to experience difficulties with their funding liquidity. Under what circumstances might that development lead to liquidity ...Under what circumstances might money in the form of currency be the best option as a store of value?Designated market makers, who historically have provided liquidity (i.e,, have stood by ready to buy and sell) in markets for specific stocks, have declined in importance. Explain this decline in terms of technology and ...
Post your question