Author Question: Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. ... (Read 18 times)

dejastew · **on:** Jun 29, 2018

Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent.

The Herfindahl-Hirschman Index in this industry is A) 100.
B) 900.
C) 1,350.
D) 2,400.

Question 2

How do banks create liquidity?

What will be an ideal response?

emily12345 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

Banks create liquidity because they accept short-term deposits and make long-term loans. The short-term deposits can be quickly and easily changed into moneyindeed, some of the deposits are money itself In exchange, the bank makes long-term loans that cannot be converted to money until their due date is reached.