Both the stock market and and unemployment insurance provide volatile payments that depend on factors like the state of the economy or whether you lose your job. But there is the fundamental difference between the returns you receive from the stock market and the ones you receive from the unemployment insurance. Which is the difference? [Hint: think of the timing when you receive the big payment]

Q: why are equities regarded as riskier than debentures for investor? a) because they are paid first…

A: Equity means ownership or stake in a company through holding of shares of that company. It is also…

Q: What has led to the downturn of the financial industry, and therefore the decrease of finance jobs?

A: The reasons for the downturn of financial industry and the subsequent recession is discussed below.…

Q: When the economy is weak, money is spent freely on needs and wants. True False

A: An economy is a large set of interrelated production, consumption, and exchange activities that help…

Q: Suppose you believe that the economy is just entering a recession. Your firm must raisecapital…

A: A rate at which a borrower is ready to pay and depositor is ready to receive the money is known as…

Q: you

A: Financial hardships Financial hardship refers to a situation in which a company cannot make payments…

Q: o lose a dollar than to gain a dollar

A: Business or life is all about gaining and losing, if one person will gain something the other will…

Q: An abnormal return occurs:   Only when the actual return is lower than the expected return. Only…

A: A market is said to be efficient, if intrinsic Value of the Security is equal to Market price of the…

Q: "Start saving early because inflation reduces the value of your money If you agree with the sentence…

A: Inflation refers to the rise in the price of the commodities in an economy. It reduces the…

Q: Answer true or false no need explanation.   1. Most thru -hiker have a good understanding of their…

A: A recession is a time period when the economy of the country faces a heavy downfall. This downfall…

Q: How would an unexpected increase in inflation affect the loss rates on property policies? a. Loss…

A: Inflation means the sustained increase in the price level of goods and services in an economy over a…

Q: None

A: The letter I provided is designed to communicate a significant and sensitive business decision to an…

Q: How does a high rate of inflation affect money in all its different roles?

A: Inflation: Inflation is a rate at which the price of the products and services rises. It frequently…

Q: Why does the Social Security system face a crisis? Are there real assets in the Social Security…

A: Social security system is a mechanism which works on "pay-as-you-go" may face crisis when the inflow…

Q: why are equities regarded as riskier than debentures for investor? a) because they are paid first…

A: The question is asking why equities are considered riskier than debentures from an investor's…

Q: The severity of a recession can be magnified by credit market imperfections in which: there is…

A: Credit market imperfections refer to the situations where the assumptions of perfect competition,…

Q: What is meant by ‘daily earnings at risk’ (DEAR)?

A: Daily earnings at risk depends on the following factors: 1. Position of the dollar rate 2.…

Q: What does the “pension asset” represent? Are you interviewing with a company whose pension plan is…

A: Pension Obligation: It refers to the commitment provided by the employer to pay its employees, the…

Q: How banks can improve their return on equity and what are its negative externalities.

A: RoE is ubiquitous in banks, serving as both an indicator of overall performance and a means of…

Q: Too much money in an economy with too little goods and services creates:

A: High amount of money in the market with little goods or services will create an imbalance in the…

Q: If an individual saved no money for the year from income sources, could their net worth increase? a.…

A: Several statements have been provided explaining why net worth may or may not go up if a person…

Q: two people, one has a high-paying job & the other has a low-paying job. Who should invest in stocks…

A: Stocks are considered to be risky because of their volatile nature. Bonds are compared to be less…

Q: Why do credit ratings change? How can these changes affect investors?

A: Credit ratings are assigned on the basis of extensive economic analysis by the credit rating…

Q: What statement about the discount rate is NOT correct?   It is used in converting between future…

A: The discount rate is utilized to determine the present value of the future cash flow. It…

Q: The economy is said to be entering a recession but your company needs to borrow money for an…

A: Recession: Recession is a slowdown of economic activity. In recession there is an increase in…

Q: Which of the following represent undiversifiable​ risks? I. The Federal Reserve raises interest…

A: The Undiversifiable risks are those that affect the overall market and cannot be eliminated by…

Q: how come people lost their homes and became failure homeless due to the lehman failures

A: The failure of the mentioned company is one of the bases of the financial crisis of 2008-09. The…

Q: Defined benefit pension plans stipulate contributions will be made to the employer’s…

A: Defined benefit pension plans stipulate contributions will be made to the employer's retirement…

Q: steps that you would take to mitigate the risk of interest rate risk

A: The important steps in mitigating interest rate risks are as follows: Diversification: One of the…

Q: A fall in interest rates tends to push stock prices O and real estate prices up. and real estate…

A: The cost of borrowing is the main mechanism at work. Businesses find it more economical to obtain…

Q: How is your borrowing power affected when you are considered a "high risk"? O There is a good chance…

A: A credit score evaluates a person's creditworthiness, or ability to repay debt. It is commonly…

Q: Explain how “at-the-money” stock options (i.e., options that have no intrinsic value) which are part…

A: At-the-money option: It is a situation where the price of the option is equal to the current price…

Q: Finance ethics is important because misconducts and their causes often leave economies with negative…

A: >  Insider Trading:> One of the most well-known and detrimental forms of financial misconduct…

Q: Having negative net income every once in a while, is not such a bad thing as long as you have…

A: Negative income is a reason for worry if it is due to uncertain or unexpected event.

Q: O Question 22 of 33 To have less money withheld from your paycheck, an employee can claim more…

A: The allowances when claimed by employees in granted by employer only on the basis of underlying…

Q: Which of the following statements is most correct?   a. When actual inflation exceeds expected…

A: Inflation and interest rates are two important economic concepts that are closely related and have…

Q: How do people get money out of the stockmarket?

A: The stock market may be a place where regular activities like buying, selling, and shares are issued…

Q: Everyone uses money, and it is important to understand what factors affect the cost of money.…

A: The scenario involves a decision regarding investment in a friend's business versus Treasury bonds,…

Q: If investing in the stock market today, how would your decisions be affected based on what you know…

A: Stock- It is a unit of ownership in a company's capital. It entitles the stockholder to an equal…

Q: 20 Which of the following is the positive impact of inflation?   Inflation makes debtors pay less…

A: Inflation refers to the phenomenon of rising price levels. This is the condition when the general…