What is the difference between equity instruments and debt instruments?

What will be an ideal response?


Equity instruments are share of stocks. It is defined as a claim to the firm's profit. Debt instrument are bonds and bank deposits. They specify that the issuer of the instrument must repay a fixed value.

Economics

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The following price-quantity coordinates for gold used by U.S. dentists were observed: P = $875/ounce, Q = 342,000; P = $200/ounce, Q = 706,000. These points most likely lie along the

A. supply curve for gold for dental use. B. demand curve for dental use. C. equilibrium curve for dental use. D. production possibilities curve for dental use.

Economics

In the basic closed-economy ISLM model, the money demand is a function of

A) output. B) money supply. C) interest rates. D) both A and C.

Economics

If the interest rate goes up, what happens to the investment demand curve?

A) It shifts to the right. B) It shift to the left. C) It stays put. D) We cannot tell.

Economics

The unreported underground economy represents about 1 percent of U.S. GDP

Indicate whether the statement is true or false

Economics