Business Studies, asked by hamdajumasaif, 5 months ago

Fill in the blanks to give a reason why markets can change over time.

_alari_s change.

Answers

Answered by Anonymous
23

Explanation:

Factors That Cause the Market to Go up and Downs

It is difficult to identify specific factors that influence the market as a whole. The stock market is a complex, interrelated system of large and small investors making uncoordinated decisions about a huge variety of investments. "The market," so to speak, is not a living entity. Instead, it is just shorthand for the collective values of individual companies.

There are basic economic principles that can help explain any up and down market movements, and with experience and data, there are more specific indicators market experts have identified as being significant

Answered by halamadrid
0

The answer for the fill in blanks is- Salaries Change

Markets change over time because of factors including the government, demand- supply, international transactions, speculation & expectation.

These are the four key factors:

  • Demand and Supply:  Prices of goods and services change with the change of demand and supply. If the demand of a good rises, the price rises. Similarly if a supply is higher than demand, the prices decreases.
  • Government: The government and its Central bank implements fiscal and monetary policy that impact the prices of goods. Basically the government uses these policies to create checks and balances in the economy like dealing with Inflation.
  • International Transactions: The flow of funds between nations affects the strength of a country's economy and its currency. Country that exports more have more foreign currencies ultimately strengthening its economy.
  • Speculation and Expectation: It is basically a speculation of future about economy, on the basis of which consumer and institution reacts and invests. It shapes both future and present prices in the economy.

These factors directly or indirectly impacts the individuals and on basis of their income they react to the prices. Henceforth "Salaries Change" with change in market.

#SPJ2

Similar questions