Why do people hold bonds rather than larger savings account

Assignment Help Macroeconomics
Reference no: EM13232456

Why do people hold bonds rather than larger savings account or checking account balances? Under what circumstances might they change their portfolios, moving their funds out of bonds and into bank accounts?

Reference no: EM13232456

Questions Cloud

Explain the five-component model of an information system : explain the five-component model of an information system. How can you use them?
What is the maximum number of parts in inventory : The introduction of quantity discounts will cause the optimal order quantity to be: A) smaller B) unchanged C) greater D) smaller or unchanged E) unchanged or greater
Explain change in the rate of the reaction : The gas-phase reaction C: RateH3NC = CH3CN has been studied in a closed vessel, and the rate equation was found to be: Rate = -delta [CH3NC]/delta t = k[CH3NC]. Which one of the folowing actions is least likely to cause a change in the rate of the..
How can both the sales manager and credit manager : How can both the sales manager and credit manager learn to appreciate each other's responsibilities?
Why do people hold bonds rather than larger savings account : Why do people hold bonds rather than larger savings account or checking account balances Under what circumstances might they change their portfolios, moving their funds out of bonds and into bank accounts
Define the ph and temperature on the function of hemoglobin : What is the effect of differing pH and temperature on the function of hemoglobin, Carbonic anhydrase, List 3 ways CO2 is transported in the blood
By how much would v have to fall to offset the increase in m : a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase c. If, instead, real output is fixe..
Which machine has better mips : We are comparing the performance of two different microprocessors, M1 and M2
Are the banks fully utilizing their lending capacity : Assume the banking system contains Total reserves $80 billion Transaction deposits $800 billion Cash held by the public $100 billion Reserve requirement 0.10 a. Are the banks fully utilizing their lending capacity b. What would happen to the money su..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Compute brazil and the united states with the state

Compute Brazil and the United States with the state of the economy.

  Why the cost curves of the firms are unchanged

If we assume that all firms in a perfectly competitive constant cost industry are identical, we conclude that, in the long run, product price will exactly equal the firms' minimum average total cost. Explain why this is true using supply and deman..

  Finding minimum price necessary for firm

Firms supply. Credit Check, Inc., offers credit checking services to credit card companies and retailers. What is the minimum price necessary for the firm to supply one thousand credit checks?

  Llustrate consumer surplus occur when market is equillibrium

Suppose supply of a good is perfectly elastic at a price of $5. The market demand curve for this good is linear, with zero quantity demanded at a price of $25. Given that the slope of this linear demand curve is -0.25, draw a supply and demand.

  Federal reserve tools to help economy

What measures and tools does Federal Reserve have at its disposal to address economy. What has the Fed employed in the past two years to help economy?

  What is the new socially optimal quantity of pollution

The marginal damages to Community A are 1q. The marginal damages to community B are 2q.Now, two other factories start producing in the area and benefit from polluting, too. For each, the marginal benefit. two other factories start producing in the ar..

  Group to that each consumer belong to explain how

If you could identify which the group to that each consumer belong to explain how would you go about setting prices.

  Explain the antitrust laws in the us stricter

Explain the antitrust laws in the US stricter also more comprehensive compared to those of other industrialized country.

  Illustrate the stated direction of recent monetary policy

Illustrate the stated direction of recent monetary policy. What recent actions have the Federal Reserve taken to confirm that direction

  Should the fed be independent or would we be better off

Should the Fed be independent or would we be better off with a central bank under the control of the president or Congress.

  Elucidate how the following factors will influence india

Elucidate how the following factors will influence India's ability to compete in a highly competitive, rapidly changing global market place.

  Explain how can these limits to reimbursement

Explain how can these limits to reimbursement be viewed as the exercise of monopsony power.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd