--%>
Assignment Help - homework help

Illustration of arbitrage in financial investment

Darlene thinks as the “cowboy look” will rebound sharply subsequent spring. Then she travels to Mexico and buys ten-thousand pairs of primo cowboy boots at $35 every, and after that waits, expecting to sell them for $350 a pair in Chicago within the spring. Therefore, her financial investment is an illustration of: (w) arbitrage. (x) innovation. (y) speculation. (z) inventory minimization.

I need a good answer on the topic of Economic problems. Please give me your suggestion for the same by using above options.

   Related Questions in Microeconomics

  • Q : Cost and revenue assume the firm is a

    assume the firm is a price taker and faces a market price of €60 per unit. draw the AR and MR curves

    		•
  • Q : Asymmetric Information on quality The

    The Asymmetric information on quality can outcome in: (i) Not all potential profits from the exchange being realized. (ii) Lower equilibrium prices. (iii) Purchases of unexpectedly low-quality items termed as ‘lemons’. (iv) Some transactio

    		•
  • Q : Making investment possible in an

    The group which ultimately makes investment in an economy possible is: (1) business firms. (2) households which consume less than their disposable incomes. (3) banks. (4) savings and loan associations. (5) financial tycoons.

    Q : Interest Rate by Holding a Bond When

    When you hold a bond if the interest rate rises, you will: (w) have less money when you sell it. (x) receive more interest income. (y) gain by shifting funds to the stock market. (z) eventually spend more and save more.

    Q : Saving and Investment Lowered interest

    Lowered interest rates since households have determined to save more tend to: (1) give incentives for financial investors to switch by stock to bonds. (2) reduce the optimal level of economic investment. (3) discourage investments in new residential c

    		•
  • Q : Earning income within negative income

    Under the negative income tax system demonstrated in this figure, a family of four along with no earned income would have a net as after-tax, the income of: (1) $15,000 per year. (2) $10,000 per year. (3) $5,000 per year. (4) $2,500 per year. (5) $0 p

    		•
  • Q : Determine equilibrium by Price Ceilings

    Between the predictable results while government sets a maximum price below equilibrium are: (1) shortages. (2) queues. (3) black markets and corruption. (4) economic inefficiency. (5) All of the above.

    Q : Changes in supply of loanable funds The

    The supply of loanable funds changes positively along with the: (w) willingness of people to defer consumption in the future. (x) profitability and productivity of new capital investments. (y) price of the output about new capital will produce. (z) fu

    		•
  • Q : Meaning of tax Meaning of tax : Tax is

    Meaning of tax: Tax is a legally compulsory payment imposed on the people by the government. There are two kinds of taxes: Direct taxes and Indirect taxes.

    		•
  • Q : Purely competitive model for analyzing

    The purely competitive model: (w) is characteristic of many actual U.S. market structures. (x) analyzes a type of economy which is now extinct. (y) is a helpful abstraction from actuality for analyzing firms’ behavior. (z) proves which modern ca

    		•