Question

By total value of assets, debt or equity capital markets are collectively larger in the United...

By total value of assets, debt or equity capital markets are collectively larger in the United States based on our most recent data from class.?

If people transfer funds from saving accounts to checking accounts, M2 will or will not decrease?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Debt or equity capital markets represents the money which is invested in stocks and shares of a company and debt instruments/debentures and does not represent other type of money supply, i.e. M0,M1, etc. and Money supply in an economy is consist of M0,M1,M2 & M3

If people transfer funds from savings accounts to checking accounts then M2 will not decrease since M2 consists of M1 plus near money(savings accounts, mutual funds, money market securities and time deposits.)

As M2 includes savings accounts and when funds are transferred from M2 to M1 which includes checking accounts then M2 will not increase since M2 is inclusive of M1 plus above mentioned near money instruments.

Add a comment
Know the answer?
Add Answer to:
By total value of assets, debt or equity capital markets are collectively larger in the United...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Choose one of the phrases for each statement. a) When giving consideration to a crypto-currency like...

    Choose one of the phrases for each statement. a) When giving consideration to a crypto-currency like Bitcoin, we can say that is or is not a store of value, one of the functions of money? b) When giving consideration to a crypto-currency like Bitcoin, we can say that is or is not a medium of exchange, one of the functions of money? c) Raising funds for your startup through Kickstarter, a “funding platform”, is direct or indirect finance? d) Borrowing...

  • Question 1) Quick Answers. For each of the following you only need to provide a one...

    Question 1) Quick Answers. For each of the following you only need to provide a one or two-word response (choose one of the underlined phrases for each statement) When giving consideration to a crypto-currency like Bitcoin, we can say that is or is not a store of value, one of the functions of money? a) b) When giving consideration to a crypto-currency like Bitcoin, we can say that is or is not a medium of exchange, one of the functions...

  • Assets Total Debt and Equity Current Assets $200,000,000 Total debt equity $220,000,000 Common stock $30,000,000 Capital...

    Assets Total Debt and Equity Current Assets $200,000,000 Total debt equity $220,000,000 Common stock $30,000,000 Capital Surplus 80,000,000 Accumulated retained earnings 170,000,000 Net Fixed Asset $300,000,000 Total shareholders Equity $280,000,000 Total Asset $500,000,000 Total debt and shareholders equity $500,000,000 a) What is the debt equity ratio on book values b) Suppose the market value of the company's debt is $225 million and the market value of equity is $670million. What is the debt equity ratio based on market values? c)...

  • To understand the advantage of debt capital from a tax perspective in the United States, determine...

    To understand the advantage of debt capital from a tax perspective in the United States, determine the before-tax and approximated after-tax weighted average costs of capital if a project is funded 60%–40% (D-E mix) with debt capital borrowed at 12% per year. A recent study indicates that corporate equity funds earn 21% per year and that the effective tax rate is 31% for the year. The tax advantage reduces the WACC from_____ % to_____ % per year.

  • rch the menus (A-T) Average Daily Operating Costs Total Assets- Total Equity Total Assets Total Debt...

    rch the menus (A-T) Average Daily Operating Costs Total Assets- Total Equity Total Assets Total Debt Ratio Total Debt 4, Debt- Equity Ratio Total Equity 4Equity Multiplier Total Assets Total Equity 3,4: 241 26 Long-term Debt Ratio Long-Term Debt3.011 Long-Term Debt+ Total Equity 9.09 29 Times Interest Earned Ratio 30 EBIT Interest 398.5 3,821, Cash Coverage Ratio EBITt Depreciationl (39857 Interest (382110 Cost of Goods Sold NA Inv 976,600 Inventory Turnover Inventory Period Ending 9/30/2018 Current Assets Cash And Cash...

  • 1. Calculate the Debt to Total Assets Ratio for Apple for the most recent year, then...

    1. Calculate the Debt to Total Assets Ratio for Apple for the most recent year, then describe how you located the information and performed your calculation. 2. Calculate the Debt to Total Assets Ratio for Microsoft for the most recent year, then describe how you located the information and performed your calculation. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29 2018 ASSETS: Current assets:...

  • Question 2 2 pts If total assets increased by $51,000 and stockholders' equity decreased by $11,000...

    Question 2 2 pts If total assets increased by $51,000 and stockholders' equity decreased by $11,000 during a period of time, then total liabilities must change by what amount and direction during that same period? • 40,000 decrease $62,000 increase $62,000 decrease $51,000 Increase $40,000 increase Question 7 1.5 pts These selected condensed data are taken from a recent balance sheet of Jane Gray's Farms (in millions of dollars). Cash Accounts receivable Inventory Other current assets Total current assets Total...

  • 1. PABG has the following capital structure: Total Assets $400,000 Debt $140,000 Equity $260,000 Pre-tax Income...

    1. PABG has the following capital structure: Total Assets $400,000 Debt $140,000 Equity $260,000 Pre-tax Income $10,000,000 Net Income After Taxes $7,000,000 A. Interest rates are 8.5%, what is the after tax cost of debt? B. If cost of equity is 11.3%, what is the weighted average cost of capital?

  • 2. What is the average debt ratio and the ratio of average liabilities to average stockholders'...

    2. What is the average debt ratio and the ratio of average liabilities to average stockholders' equity for Years 1, 2, and 3? 3. Comment on the results in (1) and (2). Case 9-5 Comprehensive profitability and solvency analysis Starwood Hotels & Resorts Worldwide Inc. (HOT) and Wyndham Worldwide Corporation (WYN) are two major owners and managers of lodging and resort properties in the United States. Fi- nancial data (in millions) for a recent year for the two companies are...

  • Based on the information in the table, calculate the firm's total debt-to-equity ratio. Round the answers...

    Based on the information in the table, calculate the firm's total debt-to-equity ratio. Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box). Balance Sheet December 31, 2014 Accounts payable $399,000 Cash and marketable $132,000 securities Accounts $311,000 receivable Inventories $512,000 Prepaid expenses $11,300 Total current $966,300 assets Gross fixed assets $2,104,000 Less: accumulated $398.000 depreciation Net fixed assets $1,706,000 Notes payable $98,500 Accrued expenses $89,300 Total current $586,800 liabilities Long-term debt...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT