For Economics "Financial Markets Channeling Funds Quick Check" can you please write all the answers.


1. Which of the following is an example of capital loss?
2. Nasdaq, the American Stock Exchange, and the OTC market collectively form the
3. Does a low-interest rate encourage people to borrow or to save? Explain.
4. Define autonomous consumption.

Respuesta :

A capital loss are is known as  loss incurred when a capital asset is sold below its main or given purchase price. Examples of capital assets that can be a loss is equity shares, bonds, property, etc.

Nasdaq, the American Stock Exchange, and the OTC market collectively form the stock market.

Does a low-interest rate encourage people to borrow or to save?

Interest rates is  known to influence the cost of borrowing money as times goes on, and due to that, lower interest rates often makes the act of borrowing very cheap.

This is said to give room for  people to spend more and also invest more wisely and freely. The act of Increasing rates will makes borrowing more difficult and costly and thus cannot favor spending or saving.

Autonomous consumption is known to be the expenses that consumers will have to make even if they have no form of disposable income.

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