MYLAB ECONOMICS WITH PEARSON ETEXT -- A
5th Edition
ISBN: 2819260099840
Author: Mishkin
Publisher: PEARSON
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Question
Chapter 2, Problem 1LO
To determine
The comparison between direct and indirect finance.
Concept Introduction:
Direct Finance - In this system, the borrowers borrow directly from the financial market without intermediaries.
Indirect Finance - In this system, the borrowers get the services indirectly through financial intermediaries.
Expert Solution & Answer
Explanation of Solution
Direct and indirect finances are different in the sense that in the former, there is no place for financial intermediary and in the latter; the financial intermediary plays an important role. In direct financing, the finance can be done directly through the financial market whereas in indirect financing, the money deposited or invested by households and other economic agents is used to finance the borrowing requirements through financial intermediaries. In direct financing, often, interest rate is not paid but in indirect financing interest rate has to be paid because an intermediary is involved.
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Students have asked these similar questions
Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36
Q
Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.
Chapter 2 Solutions
MYLAB ECONOMICS WITH PEARSON ETEXT -- A
Ch. 2 - Prob. 1LOCh. 2 - Prob. 2LOCh. 2 - Prob. 3LOCh. 2 - Prob. 4LOCh. 2 - Prob. 5LOCh. 2 - Prob. 6LOCh. 2 - Prob. 7LOCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3Q
Ch. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - Prob. 20QCh. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - Prob. 23APCh. 2 - Prob. 24APCh. 2 - Prob. 1DAPCh. 2 - Prob. 2DAPCh. 2 - Prob. 1WECh. 2 - Prob. 2WE
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