2. Explain the interactions between savings

Q: Define the term loan cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Q: Increasing interest expense will have what effect on EBIT?

A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: i. The net present value ii. The internal rate of return commend the decision to be made

A: Since in the given case the IRR is higher in machine 1 so it is to be selected.   Assumptions: We…

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings…

Q: Explain the meaning of the term Time value of money by providing examples

A: Time Value of money means a sum of money right now is worth more than a sum of money received at a…

Q: . What is time value of money? Elaborate with examples.

A: The changing inflation and value of money with the changing period will be known as time value of…

Q: Create simple examples to illustrate the following concepts. i. Time value of money ii. Effective…

A: i) Time Value of Money: The concept of time value of money underlines that the value of money today…

Q: What is meant by credit risk analysis?

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: What is an annuity?

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: 4. How can interest earned or paid on short-termsecurities or loans be incorporated in the…

A: Introduction: Interest earned is nothing but an amount earned by a firm on bank accounts or other…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: a. In your own words, describe two of the ways in which REITS can increase their income

A: REITs are a kind of publicly traded real estate securities. They are tax-advantaged trusts and are…

Q: What is the loan cash flow?

A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…

Q: Which of these options for saving money offers the most liquidity? O A. A savings bond O B. A money…

A: A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the…

Q: Explain the determinants of credit olicy variables. 2. Explain the hotives for the extension of the…

A: The important dimensions of a firm’s credit policy are credit standards, credit period, cash…

Q: What is credit enhancement, and what effect does it have on debt costs?

A: Credit enhancement represents the strategy that improves the business' credit risk profile. It helps…

Q: Define Credit analysis

A: Credit analysis is the method by which the creditworthiness of a business or organization is…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: CONCEPT MAPPING: Make a concept map from the given words below by arranging the word into an idea…

A: Annuity can be defined as the payments series that are made at equal intervals. It can be classified…

Q: Discuss the relationship between Credit View and Monetary Policy.

A: Monetary Policy:Monetary Policy is a policy that is planned and implemented by the central bank of a…

Q: Define Loan Refinancing?

A: Introduction: A loan refinancing permits a debtor to replace their present obligation of debt with…

Q: How can we determine the borrowing rate of return?

A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…

Q: What is the real interest rate on your savings account?

A: Real Interest Rate = Nominal Interest Rate − Inflation Rate

Q: What are the advantages and disadvantages of using credit?

A: Credit is defined as the financial agreement where the borrowers receive something valuable and in…

Q: What are the essential differences among demand deposits, savings deposits, and time deposits?

A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…

Q: What is the role of transferring credit risk? What is the various instruments used to transfer this…

A: Risk transfer is a management strategy that involves transferring the risk from one party to another…

Q: What is credit risk

A: In the world of finance credit risk is one of the most important risk and one of the most tangible…

Q: posit multiplier and money multiplier ? Explain.

A: Deposit Expansion Multiplier System The deposit expansion multiplier is also known as Deposit…

Q: How much is the VAT Payable?

A: VAT payable is the amount of vat tax which is to be paid to the tax authority of the country and…

Q: QUESTION 2 The savings plan that is likely to have a set rate of return is a O Money market account…

A: Money market instruments are held for a short time period while capital market instruments are held…

Q: What four fundamental factors affect required rates of return(i.e., the cost of money)?

A: The minimum rate that is expected by an investor from the investment made in a project is referred…

Q: What are the credit transfer markets?

A: Financial market is called as a place where all securities such as bonds, shares, debentures etc.…

Q: explain the concepts of compounding and discounting(Time Value of Money), and give practical…

A: The term compounding can be defined as future value of persent investment. Future value is an amount…

Q: Which factor sets an upper limit on how much can be paid for savings?

A: The expected return seems to be the benefit or disadvantage anticipated by a participant on…

Q: Explain the traditional model of money demand

A: Demand for money is required for Private Consumption. It results in Gross Domestic Product. GDP is…

Q: Explain what is meant by the phrase time value of money.

A: Phrase time value of money means a same amount of value of money has more value today than value at…

Q: Critically discuss three financial innovations and their impact on money supply and money demand

A: Financial innovation is the technical advances which allow to access the information, dealing as a…

Q: What three variables determine how much interest a person could earn from a savings account?

A: Interest is an extra amount which a person gets on his/her deposit amount. The interest is provided…