Finance Answers

The transmission mechanisms for monetary policy are

Select one:

a. structural models.

b. reduced form models.

c. both of the above.

d. neither of the above.

The recent increase in U.S. government debt could lead to a(n) _____ in yields due to an increase in

Select one:

a. increase; default risk.

b. decrease; default risk.

c. increase; liquidity.

d. decrease; liquidity.

The difficulties associated with forward contracts can be eliminated by:

Select one:

a. mandating a minimum amount to be paid by the buyer.

b. developing standardized weights, definitions, and expiration dates.

c. reducing the possibility of hedging and speculation.

d. reducing the liquidity of the forwards market.

"From Jan 2006 to Jul 2016, the Consumer Price Index for college tuition and fees increased 63 percent, compared with an increase of 21% for all items. Over that period, consumer prices for college textbooks increased 88% and housing at school (excluding board) increased 51%."

It's no secret that college is expensive and, while community college is less expensive than two years at a university, this isn't much comfort for those who have to take out loans or pay out of pocket.

1) According to multiple sources, "Americans owe over $1.4 trillion in student loan debt...that's about $620 billion more than the total U.S. credit card debt...the average class of 2016 graduate has $37,172 in student loan debt" (SLH). What potential problems does this pose? What, if anything, should be done about this and by whom? 200 words

2) What motivated you to go to college and do you think that it will be worth the investment? 200 words

3) What should Americans consider before applying to college? 200 words

A) Many economist also believe that a steed positive curve means that investors expect strong future economic growth with higher future inflation thus higher interest rates ,and that a sharply inverted curve means investors expect sluggish economic growth with lower future inflation (thus lower interest rate). A flat curve generally indicates that investors are unsure about future economic growth and inflation. Explain the three(3) central theories that attempt to give meaning to the shape of the yield curves.(9marks)

B) Distinguish between the norminal and real interest rates, and explain how the letter is related to the former.(3 Marks)

C) Describe factors making up the demand supply of loanable funds in an economy.(5 marks)

D) Write a general expression for the yield on any debt security (rd) and define these terms : real risk-free rate of interest (r*), inflation premium (IP), default risk premium (DRP), liquidity premium (LP), and maturity risk premium (MRP). (8 marks)

[Total=25 marks]

WIP for value of EUR 400000 were completed. what are the correct registration?

Sohni Dharti International is a renowned seed company and they want to expand their business.

They hire you as a financial expert and provide you following financial records for the years of 2019

and 2020. Company has Cash $53,000 in 2019 and $31,000 in 2020, Marketable securities $87,000

in 2019 and $0 in 2020, Account Receivable $346,000 in 2019 and $528,000 in 2020, Account

payable in 2019 is $13,000 and in 2020 is $27,000, Bank borrowing in 2019 is $10,000 and in 2020

is $35,000, common stock is $100,000 in both 2019 and 2020. Being a financial expert prepare cash

flow statement by using direct method and then give your opinion whether company has sufficient

funds to take advantage of investment opportunities or not?

Q no #3 Sohni Dharti International is a renowned seed company and they want to expand their business. They hire you as a financial expert and provide you following financial records for the years of 2019 and 2020. Company has Cash $53,000 in 2019 and $31,000 in 2020, Marketable securities $87,000 in 2019 and $0 in 2020, Account Receivable $346,000 in 2019 and $528,000 in 2020, Account payable in 2019 is $13,000 and in 2020 is $27,000, Bank borrowing in 2019 is $10,000 and in 2020 is $35,000, common stock is $100,000 in both 2019 and 2020. Being a financial expert prepare cash flow statement by using direct method and then give your opinion whether company has sufficient funds to take advantage of investment opportunities or not?

Qno #2 Consider yourself as a manager of a bank and one customer approaches you to get loan, then how you will calculate the financial credibility of customer based on analysis of Quick ratio, Debt to total assets ratio, Return on Equity ratio and current ratio. The financial statement at the end of December

are $40,000, Total debts $65,000, inventory $25,000, Net profit after tax $20000 and shareholders’ Equity $56,000. What will be your decision as manager either you will consider him for giving loan or not?

Q no # 2 Consider yourself as a manager of a bank and one customer approaches you to get loan, then how you will calculate the financial credibility of customer based on analysis of Quick ratio, Debt to total assets ratio, Return on Equity ratio and current ratio. The financial statement at the end of December

are $40,000, Total debts $65,000, inventory $25,000, Net profit after tax $20000 and shareholders’ Equity $56,000. What will be your decision as manager either you will consider him for giving loan or not?