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Which best explains the difference between a fixed currency and floating currency?
A fixed currency is pegged to another major currency or a basket of currencies, with its value maintained by the government or central bank, which intervenes in the foreign exchange market to stabilize it. In contrast, a floating currency's value is determined by market forces, such as supply and demand, without direct government intervention. This means that fixed currencies can provide stability but may restrict monetary policy flexibility, while floating currencies allow for automatic adjustments to economic conditions but can lead to volatility.
How do you calculate liquidity premium?
Liquidity premium is calculated by comparing the yields of liquid and illiquid assets. It represents the additional return that investors require for holding less liquid investments. To calculate it, subtract the yield of a highly liquid asset (like government bonds) from the yield of a less liquid asset (like corporate bonds). The difference reflects the liquidity premium investors demand for taking on the additional risk of illiquidity.
What is the inverse demand function of Q equals 150-5P?
155
What happens when you Short a call option?
"Shorting a call" is better known as writing a naked call. Basically, a naked call is a call on a position you don't hold, and it has unlimited risk--if you get exercised and the strike price plus the premium is lower than the stock price, you must make up the difference out of your margin account--or you'll receive a margin call from your brokerage. Many brokerages won't allow you to write a naked call, and the ones that will demand a very large margin account and a lot of experience in trading options.
How much is 1kg Tartuffe worth?
The price of 1 kg of tartuffe, or truffles, can vary widely based on the type and quality, as well as market demand. Typically, prices can range from a few hundred to several thousand dollars per kilogram. For example, black truffles may cost between $500 and $1,500 per kg, while white truffles can fetch $2,000 or more. It's best to check current market prices for the most accurate valuation.
Difference between elastic and inelastic demand?
difference between elastic and inelastic demand
What is the difference between a term security and a demand security?
distinguish between a term security and a demand security
What is the difference between demand and exchange?
Demand is to ask for something forcibly. Exchange is to trade.
How many types of demand functions are there?
There are several types of demand functions, but they can generally be categorized into three main types: linear demand functions, non-linear demand functions, and elastic demand functions. Linear demand functions express a straight-line relationship between price and quantity demanded, while non-linear functions can take various shapes, reflecting more complex relationships. Elastic demand functions measure how sensitive the quantity demanded is to changes in price, indicating whether demand is elastic, inelastic, or unitary. Each type serves different purposes in economic analysis and modeling.
Difference between a demand schedule and demand curve?
Demand schedule is a tabular representation nd Demand curve is a graphical representation
What is the difference between a demand schedule and a demand curve?
a demand schedule is a table showing the relationship between the price of a good and the quantity demanded , but a demand curve is a graph showing the relationship between the price of a good and the quantity demanded.
What is the difference between demand function and demand schedule?
Demand schedule: a list of demand/price equivalencies. It can best be seen as a table with discrete points. Demand function: a continuous function of price-demand interaction. Main difference: schedule is discrete; function is continuous.
What is the difference between supply side gaps and demand side gaps?
Supply is the amount produced and demand is the amount that is wanted.
The primary difference between a change in demand and a change in the quantity demanded is?
a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve
What is the Difference between decrease in demand and contraction in demand?
if demand falls due to change in price of commodity its terms in Economics as contraction in demand, and if demand falls due to other reasons its term decrease in demand...
What is the relationship between Marshallian demand and Cobb-Douglas utility functions in microeconomics?
In microeconomics, Marshallian demand refers to the quantity of a good or service that a consumer is willing to buy at a given price. Cobb-Douglas utility functions are mathematical models that represent consumer preferences and satisfaction. The relationship between Marshallian demand and Cobb-Douglas utility functions lies in how the utility function influences the consumer's demand for goods and services based on their preferences and budget constraints.
What is the difference between Peak and off peak?
peak is when the demand of electric power is very high, and off peak is when the demand is low
