Question: The bid-ask spread increases if the price level _____ and volatility _____. increases; increases increases; decreases decreases; increases decreases; decreases

The bid-ask spread increases if the price level _____ and volatility _____.

increases; increases

increases; decreases


decreases; increases

decreases; decreases

Step by Step Solution

★★★★★

3.45 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is provi... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?

Q:

If a Treasury note has a bid price of $975, the quoted bid price in the Wall Street Journal would be A. 97:50. B. 97:16. C. 97:80. D. 94:24. E. 97:75. If a Treasury note has a bid price of $995, the...

Q:

The bid and ask yields for a Treasury bill were quoted by a dealer as 5.91% and 5.89%, respectively. Shouldnt the bid yield be less than the ask yield, because the bid yield indicates how much the...

Q:

Question 15 1.5 pts Today you observe the folowing quotes: Spot GBPUSD - $1.06 60 Day Forward GBPUSD - $1.26 In 60 day you expect to receive 171,078 British Pounds. In 60 days you expect the GBPUSD...

Q:

A trader owns a commodity as part of a long-term investment portfolio. The trader can buy the commodity spot for $951 per ounce and sell it spot for $950 per ounce (so, yes, here we need to consider...

Q:

Find the net present value of a project with initial cost of $5,876,000 and produces the following cash flows: $3,200,000 at the end of year 1; $2,973,000 at the end of year 2; and $2,525,000 at the...

Q:

Assume that the dealer quote for the Canadian dollar (CAD) American dollar (USD) currency pair in the current spot market is USD/CAD 1.3436 1.3441 (Bid Ask). a. If a dealer is willing to offer a new...

Q:

Question 9 2 pts A trader owns a commodity as part of a long-term investment portfolio. The trader can buy the commodity spot for $980 per ounce and sell it spot for $978 per ounce (so, yes, here we...

Q:

1. A trader owns a commodity as part of a long-term investment portfolio. The trader can buy the commodity spot for $920 per ounce and sell it spot for $918 per ounce (so, yes, here we need to...

Q:

A trader owns a commodity as part of a long-term investment portfolio. The trader can buy the commodity spot for $951 per ounce and sell it spot for $950 per ounce (so, yes, here we need to consider...

Q:

Refer to Exercise 10.56. (a) Construct a 95% confidence interval for PE - PH- (b) Construct a 90% confidence interval for PH - PC- (c) Construct 95% confidence intervals for pD, pH, pE, and pC,...

Q:

Using the information from BE14- 24, prepare the journal entry to record the bond conversion, assuming the balance of the unamortized premium on the date of conversion is $ 14,660. In BE14-24 Lee...

Q:

Which of the following classifications make a shareholder ineligible to own stock in an S corporation? Nonresident alien individual Foreign corporation Partnership All of these are correct.

Q:

5.2 Rewrite the following CISC-style program fragment so that it executes correctly on a RISC (load-store) processor that executes the GPR ISA outlined in the previous chapter. Assume that the GPR...

Q:

1. Find out consumer surplus and producer surplus of the Home country in autarky. (3pts) 2. Derive the import demand function of the Home country and the export supply function of the Foreign...

Q:

DESCRIPTION OF THE PALABORA COVENTIONAL MILLING CIRCUIT The Figure 2 represents a conventional milling circuit at Palabora Mining. Crushed copper ore of 9mm particle size is fed to the rod mill, and...

Q:

roblem 11-36 (LO. 2, 11) a. Heather wants to invest $40,000 in a relatively safe venture and has discovered two alternatives that would produce the following reportable ordinary income and loss over...

Q:

Part 2: Presentation and Data Work (90 marks) You have been asked to collect company data and to create a final written presentation based on your analysis of the data and the performance measures...

Q:

3.5 In predicting house prices, how would you handle a feature which describes the lot as "no slope", "gentle slope", "moderate slope", and "severe slope

Q:

The expenditures on tires by the Ford Motor Company are not included directly in GDP statistics while consumer expenditures on replacement tires are included. Why?

Q:

Multiple Choice Questions: 1. Starting from long-run equilibrium, an increase in aggregate demand? a. Causes an inflationary gap. b. Results in a lower price level. c. Increases unemployment. d. Does...

Q:

Assume that a product sells for $100 in the United States. a. If the exchange rate between British pounds and U.S. dollars is $2 per pound, what would the price of the product be in the United...

Q:

What are your fundamental objectives in the context of renting an apartment while attending college? What are your means objectives? Create a fundamental-objectives hierarchy and a means-objectives...

Q:

Occasionally a decision is sensitive to the way it is structured. The following problem shows that leaving out an important part of the problem can affect the way we view the situation. a. Imagine...

Q:

You have met an acquaintance for lunch, and he is worried about an upcoming meeting with his boss and some executives from his firms headquarters. He has to outline the costs and benefits of some...