Author Question: Give three examples of ways in which financial markets channel household savings into investment ... (Read 40 times)

natalie2426 · **on:** Jun 29, 2018

Give three examples of ways in which financial markets channel household savings into investment projects.

What will be an ideal response?

Question 2

Refer to Figure 4-1. If the market price is 2.50, what is the maximum number of ice cream cones that Kendra will buy?

A) 1 B) 2 C) 3 D) 4

lin77x · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

(1.) Banks make loans to businesses using funds saved by households.
(2.) A corporation uses its retained earnings to purchase new equipment.
(3.) A new firm issues stock to get funds to set up its business.
(4.) Venture capital

Answer to Question 2

C