Questions from Financial Markets

Q: Assume that the U.S. economy experienced deflation during the

Assume that the U.S. economy experienced deflation during the year, and that the consumer price index decreased by 1 percent in the first six months of the year, and by 2 percent during the second six...

Q: Assume the following information for an existing bond that provides annual coupon

Assume the following information for an existing bond that provides annual coupon payments: Par value = $1,000 Coupon rate = 11% Maturity = 4 years Required rate of return by investors = 11% a. What...

Q: What type of information do investors rely on in order to determine

What type of information do investors rely on in order to determine the proper value of stocks?

Q: What are the functions of securities firms? Many securities firms employ

What are the functions of securities firms? Many securities firms employ brokers and dealers. Distinguish between the functions of a broker and those of a dealer and explain how each type of professio...

Q: Explain why some stocks in the marijuana industry were mis-valued

Explain why some stocks in the marijuana industry were mis-valued when several states legalized the recreational use of marijuana.

Q: If the federal government planned to expand the space program, how

If the federal government planned to expand the space program, how might this change affect interest rates?

Q: Assume that if the U.S. dollar strengthens, it

Assume that if the U.S. dollar strengthens, it can place downward pressure on U.S. inflation. Based on this information, how might expectations of a strong dollar affect the demand for loanable funds...

Q: Different types of financial institutions commonly interact. Specifically, they may

Different types of financial institutions commonly interact. Specifically, they may provide loans to each other, and take opposite positions on many different types of financial agreements, whereby on...

Q: What is the difference between the nominal interest rate and real interest

What is the difference between the nominal interest rate and real interest rate? What is the logic behind the implied positive relationship between expected inflation and nominal interest rates?

Q: What factors influence the shape of the yield curve? Describe how

What factors influence the shape of the yield curve? Describe how financial market participants use the yield curve.