139k views
2 votes
Quarterly Income Debt Securities - QUIDS

1 Answer

5 votes

Final answer:

The term QUIDS relates to financial markets, focusing on the balance of demand and supply of financial capital in the U.S., illustrated by graphs showing the U.S. as a global borrower pre- and post-U.S. debt uncertainty.

Step-by-step explanation:

The discussion of Quarterly Income Debt Securities (QUIDS) pertains to the realm of financial markets and instruments. Specifically, it taps into the concept of the quantity of financial capital in the context of the U.S. as a global borrower.

Prior to the uncertainty in U.S. public debt, there existed an equilibrium at which the equilibrium rate of return (Ro) and the equilibrium quantity (Qo) of financial capital were established (denoted as E or E1 in the figures). This equilibrium reflects a balance where the amount of capital supplied to the market by foreign investors meets the amount of capital demanded by U.S. borrowers.

The increase in uncertainty surrounding U.S. public debt may affect this balance, causing shifts in both demand and supply curves and leading to changes in the equilibrium interest rates and quantities of financial capital in U.S. markets.

The complete question is: Quarterly Income Debt Securities - QUIDS. Elaborate!

User Nik Bo
by
7.7k points