Homework Answers
Ans is B
Diversification means opening up more opportunities. Thus diversification means investing into different investments. Thus saving can be invested into various financial investment due to which risks also get diversified
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Diversfication refers to: making sure that a loan has suffiolent collaioral putting one's savings into a...
Bob graduated from college two years ago with a degree in communications. He has a good...
Bob graduated from college two years ago with a degree in communications. He has a good job as a Communications Specialist making $50,000 a year. Because he took a basic financial class during his sophomore year of college, he understands the importance of creating a plan for his money. So he made it a priority to start saving, and he currently has a savings account of $5,000 built up. He’s motivated to continue putting away money for the future. However,...
1) A borrower who takes out a loan usually has better information about the potential returns...
1) A borrower who takes out a loan usually has better
information about the potential returns and risk of the investment
projects he plans to undertake than does the lender. This
inequality of information is called
A) moral hazard.
B) asymmetric information. C) noncollateralized risk. D)
adverse selection.
2) If bad credit risks are the ones who most actively seek
loans then financial intermediaries face the problem of
A) moral hazard.
B) adverse selection.
C) free-riding.
D) costly state verification....
Summarize Article below: The term capital investment has two usages in business. First, capital investment refers...
Summarize Article below: The term capital investment has two usages in business. First, capital investment refers to money used by a business to purchase fixed assets, such as land, machinery, or buildings. Secondly, capital investment refers to money invested in a business with the understanding that the money will be used to purchase fixed assets, rather than used to cover the business's day-to-day operating expenses. For example, to purchase additional capital assets a growing business may need to seek a...
I am not sure how to answer question 1d and e as well as question 2 YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households Ye...
I am not sure how to answer question 1d and e as well as
question 2
YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households YesBank's holdings of shares and bonds, etc retail current account deposits (deposits by general public with YesBank) commercial current account deposits (deposits by companies with YesBank) tangible assets and property cash in vaults reserve deposits with Bank of England...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market? Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk. Here are three alternative investments that could help you accomplish retirement savings diversification outside the stock market. Just like any investment, each one comes with risks that should be carefully considered before making any...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market? Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk. Here are three alternative investments that could help you accomplish retirement savings diversification outside the stock market. Just like any investment, each one comes with risks that should be carefully considered before making any...
2. Types of short-term bonds Short-term debt securities have a maturity of one year or less....
2. Types of short-term bonds Short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital n borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term d being described Definit Term Tiger Telecommunications Company needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities that the borrower will...
Assignment : Imagine that a friend who knows you are working toward your degree in business...
Assignment : Imagine that a friend who knows you are working toward your degree in business administration is complaining about interest rates. Perhaps they think the rate they are getting on savings vehicles, like money markets, is too low, or the interest they are paying on their mortgage is too high. They conclude that it seems like no matter what they lose. 1) Respond to your friend's concerns. Be sure to be specific in supporting the points you are making...
Horizontal and Vertical Analysis. Horizontal analysis refers to changes of financial statement numbers and ratios across...
Horizontal and Vertical Analysis. Horizontal analysis refers to changes of financial statement numbers and ratios across two or more years. Vertical analysis refers to financial statement amounts expressed each year as proportions of a base such as sales for the income-statement accounts and total assets for the balance-sheet accounts. Exhibit 4.55.1 contains Retail Company's prior-year (audited) and current-year (unaudited) financial statements, along with amounts and percentages of change from year to year (horizontal analysis) and common-size percentages (vertical analysis). Exhibit...
1. What is the rationale for making the bankruptcy discharge of student loans very difficult? 2....
1. What is the rationale for making the bankruptcy discharge of student loans very difficult? 2. Petitioner argued that she should be able to use a postdischarge event (the auto accident) as a basis for establishing that she could not maintain a “minimal” standard of living, and thus she should get a retroactive discharge of her student loans. What benefit is there to her if she could successfully make the argument, given that she could—as the court noted—file for Chapter...
1) A borrower who takes out a loan usually has better
information about the potential returns and risk of the investment
projects he plans to undertake than does the lender. This
inequality of information is called
A) moral hazard.
B) asymmetric information. C) noncollateralized risk. D)
adverse selection.
2) If bad credit risks are the ones who most actively seek
loans then financial intermediaries face the problem of
A) moral hazard.
B) adverse selection.
C) free-riding.
D) costly state verification....
I am not sure how to answer question 1d and e as well as
question 2
YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households YesBank's holdings of shares and bonds, etc retail current account deposits (deposits by general public with YesBank) commercial current account deposits (deposits by companies with YesBank) tangible assets and property cash in vaults reserve deposits with Bank of England...
2. Types of short-term bonds Short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital n borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term d being described Definit Term Tiger Telecommunications Company needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities that the borrower will...
Assignment : Imagine that a friend who knows you are working toward your degree in business administration is complaining about interest rates. Perhaps they think the rate they are getting on savings vehicles, like money markets, is too low, or the interest they are paying on their mortgage is too high. They conclude that it seems like no matter what they lose. 1) Respond to your friend's concerns. Be sure to be specific in supporting the points you are making...
Horizontal and Vertical Analysis. Horizontal analysis refers to changes of financial statement numbers and ratios across two or more years. Vertical analysis refers to financial statement amounts expressed each year as proportions of a base such as sales for the income-statement accounts and total assets for the balance-sheet accounts. Exhibit 4.55.1 contains Retail Company's prior-year (audited) and current-year (unaudited) financial statements, along with amounts and percentages of change from year to year (horizontal analysis) and common-size percentages (vertical analysis). Exhibit...
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