Finance Answers

Using the knowledge acquired 

in the course (Money and Banking), explain how the Government through the central Bank (Fed) can reduce the inflation rate. (Explain the tools and the transmission mechanisms)

 Explain the role of asymmetric information in financial markets. How does the existence of asymmetric information explain the importance of banks in financial markets?

Give two reasons why a central bank (Fed) does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion 

process.

As a financial manager of a large firm, you plan to borrow $100 million over the next year.

i). Mention 2 most likely ways in which you can borrow $100 million?

ii). How do individuals indirectly provide the financing for your firm when they maintain deposits at depository institutions.

Should managers estimate intrinsic values or leave that to outside security analysts? Explain

Damon is employed as a manager with REDL which conducts a property development business in HK. Damon provided the following information relating to the year ended 31/3/2022:

(1) Damon’s basic salary: $60,000 per month.

2) REDL purchased a medical insurance policy for Damon and his family at a cost of $16,000. Damon received a reimbursement of medical expenses from medical insurance scheme which cost him $12,000.

(3) REDL rented a property at a monthly rent of $15,000 starting from 1/6/ 2021 for a two-year period and provided this property rent-free to Damon.

(4) REDL provided Damon with two round-trip tickets to Paris for a holiday. The air tickets cost REDL $30,000, and Damon could sell them for $20,000.

(7) Damon’s stepmother (aged 54) lives in a registered nursing home in Shatin. The nursing home expenses of $10,000 per month were paid by Damon.

(8) Damon and his wife made cash donations totaling $10,000 to various approved charities.

(9) During the year, Damon contributed $18,000 to the MPF.

Describe any 6 types of bonds that are used to source funds for enterprise. 

In respect to financial management compare and contrast money and capital markets.

Discuss any 5 attributes of continuous markets.

Discuss any 5 attributes of continuous markets.