Basic determinant of transactions demand and asset demand
Describe the basic determinant of (a) the transactions demand and (b) the asset demand for money?
Expert
(a) The level of nominal GDP. The superior this level, the greater the amount of money demanded for transactions. (b) The interest rate. The greater the interest rate, the lesser the amount of money demanded as an asset.
1. How would you fund the tranche Z of the example in the securitization manual? 2. What reinvestment rate from the excess spread will guarantee that there will be sufficient money to pay0ff creditors of tranche Z? 3. When tranche Z creditors will get
In the year of 1996, the U.S. Congress raised the minimum wage from $4.25 per hour to $5.15 per hour. Some of the people suggested that a government subsidy could help employers finance the higher wage. Assume the supply of low-skilled labour is specified by
Describe the benefits of the JIT inventory control system? The just-in-time (JIT) inventory control system lowers inventory carrying costs & tends to raise quality.
Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va
what do you understand by planning premises
What happens to the riskiness of portfolio if assets along with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk based on the degree of correlation among the two variables in questi
Describe primary reasons that companies hold cash? Companies hold cash to make essential payments, to take benefit of opportunities as they arise, and to cover unforeseen emergencies.
For a specified IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject? For a specified IOS and MCC, all independent projects that plot on the IOS above the MCC are accepted. Those
Normal 0 false false
Budget: It is a plan of operation stated in terms of financial or other resource necessities for a particular period of time.
18,76,764
1924466 Asked
3,689
Active Tutors
1412413
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!