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The impact of the covid-19 on the Malaysia financial institution between 2019-2020
Matano upon retirement came across the following investment regimes;
a) 12% p.a compounded annually
b) 11% p.a compounded quarterly
c) 10% p.a. compounded monthly
d) 9.85% p.a compounded continuously
advise
i) As a rational lender which one would you choose? (3 marks)
ii) As a rational borrower which of the regimes would you choose? (3 marks)
upon retirement came across the following investment regimes;
a) 12% p.a compounded annually
b) 11% p.a compounded quarterly
c) 10% p.a. compounded monthly
d) 9.85% p.a compounded continuously
advise
i) As a rational lender which one would you choose? (3 marks)
ii) As a rational borrower which of the regimes would you choose? (3 marks)
1. Explain "demand for money
2. State and explain any four (4) characteristics of money
explain the action need to be taken to resolve upon winding up a partnership.
The company ABC produces travelling leather bags sold at the price of 120$ each, thus realising revenues from bags sales in amount of 1.680.000$. The CEO highlighted the problem of inventory management, especially the problem of high inventory costs if leather as a basic raw material. For each bag 1.25 squared meter of leather is used. The price of the leather is 50$ per 1square meter. The purchase department manager reported that the annual carrying cost per 1square meter of leather is 10% of the value, while the ordering costs per order have increased to 120$ per order. So far they have made equal orders every two months (60days), but now the company Board asked the OPTIMAL ordering quantity to be made, so to minimize the total inventory costs for the leather.
a)an optimal quantity of leather in square meters and compare with the current one
b) compare the total inventory cost that the company will pay if they plays current order, with the leather inventory costs for placing optimal order.
Excersise 1- 10 years ago, your faughter bought 4(four),7% semi- annual coupon bond with a 25 year maturity, at the face value of 5000$. How much he will get for these four bonds if he sells them today, knowing that the current interest rate is 6%?
Excercise 2- Last year the company ABC revenues from sales of bicycles were 900.000$, and the average price of the bicycle was 300$. The terms of payment was 45 days net while variable to fixed cost ratio was 80:20. The company has done some financial investments gaining 20% rate of return im stocks trading. This year's the company board members want to increase sales of bicycles and thus suggest relaxing of credit terms from 45 days to 60 days to all buyers projecting the increase in sales for additional 12%.
Calculate and demonstrate your calculation showing if the relaxing kf the credit terms will be acceptable, having in mind the opportunity in investing in profitable stocks with return of 20%.
the national bank give a prize of 1000000 L.E.your prize can be taken either in the form 40000 L.E at the end of each of the next 25 years or as a lump sum of 500000 L.E paid immdiately.
If you expect to be able to earn 5.5 percent annually on your investments over the next 25 years, which alternative should you take? why?
1. Consider the expenditure definition of GDP:
Y=C+I+G+NX
Can we conclude from the above identity that an expansionary fiscal policy will always lead to increase in GDP? Explain (with diagrams) (Assume Investment is fixed)
QUESTION FOUR
A.Compare and contrast the Keynesian and Friedman's approach to money demand. [12 marks]
B. How would a decrease in the reserve requirement affect the (a) size of the money multiplier, (b) amount of excess reserves in the banking system, and (c) extent to which the system could expand the money supply through the creation of checkable deposits via loans? [6 marks]
C. Explain any FOUR (4) options available to the Bank of Zambia to increase the money supply? Explain how each works. [4marks]
D. Explain the THREE (3) main features of money. [3 marks]
[Total=25 marks]
#339914 on Dec 2023