Contrast the modern construct for FISIM with a measure that sub- tracts deposits from the financial sector’s lending to measure value added in the financial sector, i.e. what we called gross profits. How will these two measures differ in terms of size and sensitivity to risk? Can you give differing views of a world without finance for each to be the proper measure of value added? [Note these are two different statistics which are designed to measure the same number so if they differ at least one of is incorrect.]

Q: In which economic conditions would a central bankwant to use a “forward-guidance” strategy? Based…

A: Forward guidance refers to the communication from the central bank regarding the prevailing state of…

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: What is the vocabulary word for money that's in financial markets, and a rate of return for a…

A: The vocabulary word is the term for things generally used in the Financial market.

Q: When analyzing key macroeconomics to assess GDP growth/decline, how would you measure the…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Elaborate with real world examples about different financial markets that contribute forwards growth…

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Q: The pricing efficiency of financial markets can be expected to decrease if the cost of skillful…

A: Skilled financial manpower is very important in financial sector and valuation of assets in…

Q: Is the claim that lower company taxes adding to investments correct or is it debatable given the…

A: The money left after expenditure is savings. Savings are used by the individuals for investment. Not…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: Which of the following statements is false?   A.   Funding risk is the risk that a firm will not…

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Q: Which of the following decision criteria is the easiest to use and very popular among investors?…

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Q: For a project I have due, I need help determining which of these ratios is best to determine…

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Q: What distinguishes a money market instrument from other financial instruments? Please give us a wide…

A: The money market is the market where buyers and sellers engage in purchasing and selling short-term…

Q: Discuss the factors that affect the WACC. Also discuss how these factors may differ somewhat from…

A: WACC: Weighted average cost of capital refers to the rate of the cost that a company or business…

Q: What does it mean to adopt a maturity matching approach to financing assets, including current…

A: Matching concept while preparing the income statement , revenue  and profits are matched with…

Q: Value at Risk (VaR) is a statistical measure of maximum loss used by banks and other financial…

A: Value at Risk is a technique used by institutions to analyze the potential risk assessed in the…

Q: Discuss the following statements: “(1) individual financial institutions will generally have…

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A: GDP Gross domestic product (GDP) is the measure of total value of goods and services produced within…

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A: Security returns are considered as less correlated presumably on the grounds that nations are not…

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Q: Why are rates of return superior to dollar returns when comparingdifferent potential investments?

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Q: Which of the following is consistent with a steeply upwardly sloping yield curve?a. Monetary policy…

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Q: e. True/False/Explain: “All financiers (i.e., lenders and equity holders) of a firm's assets expect…

A: The question is based on the concept of the minimum required rate of return. The minimum return is…

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Q: With respect to the circular flow model of national income, which of the following statements is…

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Q: Sensitivity analysis is concerned with determining how much variation in financial data, the…

A: Sensitivity  analysis is a monetary model that decides what target factors are meant for dependent…

Q: Suppose the population of Area Y is relatively young, and the population of Area O is relativelyold,…

A: a) Area Y consists of a comparatively young population and will thus save low and have a large…

Q: Why is the acid test ratio a more rigorous test of short-term solvency than the current ratio? A.…

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Q: Through utilizing fiscal policy, i.e. varying ________ and/or ___________, governments achieve goals…

A: The correct answer is given in the following steps for your reference in the following steps.

Q: e usage of financial intermediaries as middlemen for these transactions actually increased?

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Q: Distinguish between different levels of financial market efficienc

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A:

Q: Evaluate and summarize some monetary policies which will affect a particular type of financial…

A: Monetary policies refer to those economic actions which are taken by the central bank of a country…

Q: Would you expect positive covariances of returns between different types of assets such as returns…

A: Covariance is the measure of the degree to which two variables move together relative to their…

Q: Which of the following statements is true? Group of answer choices The Principle of Diversification…

A: Diversification is investing our money in different asset classes so that we can minimize risk

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.