Explain the factors that account for the large increase in market share experienced by mutual funds since 1980
What will be an ideal response?
The growth of mutual funds is attributed to the stock market boom; the ability to invest in a variety of assets including bonds, foreign securities and specialized industries; the growing importance of pension plans that invest through mutual funds; and the growth of money market mutual funds as an alternative to bank deposits.
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Government outlays include all of the following EXCEPT
A) dividend payments. B) spending on the military. C) electricity for the Capital Building. D) letterhead stationery.
Typically, a capital expenditure project will result in:
a. a cash flow stream to the firm b. a cash outflow from the firm c. an initial (one-year) outflow followed by a series of cash inflows d. for long projects, an initial five-year outflow followed by a series of cash inflows
What occurs when it is impossible to improve the situation of one party without imposing a cost on another?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
When it is possible to trade two separate currencies for a common third currency, economists refer to profit opportunities as:
a. backward arbitrage. b. speculation. c. triangular arbitrage. d. forced equilibrium.