Define sinking fund

Q: What is a benchmark and why is there a need to compare the fund's return vis-a-vis a benchmark?

A: Benchmark is considered as a standard against which the actual performances of the securities are…

Q: Differentiate between Closed-End and Open-End funds

A: The question is related to Mutual Funds. On the basis of functional classification funds are of two…

Q: How does an index fund differ from an actively managed fund?

A: An index fund and actively managed fund are different investment vehicles. They have been explained…

Q: What is meant by the sinking-fund factor (SFF)?

A: The sinking fund factor is the calculation that tells the investor how much of an annuity payment…

Q: Explain the meaning of asset and liability management through the Pool Fund Approach.

A: Asset/liability management is the technique of controlling the use of assets and cash flows in order…

Q: What is the purpose of using the retained funds?

A: After paying the dividends, the company retains the remaining net income which is called addition to…

Q: = sinking fund formula, calculate the

A: Payment per month refers to the amount which a borrower should at the end of each month or period to…

Q: Analyze the advantages of an index fund or a fund of funds. Explain in details

A: Mutual funds is an investment vehicle that pools out funds from large number of investors and invest…

Q: (Trust fund) What is outright distribution? Give example or a scenario (use simple words so its…

A: A trust is created on the some specific or general purpose. Under trust, the property like assets or…

Q: Investment projects fall within two types. What are they?

A: An investment project is a series of cash inflows and outpourings, normally beginning with a money…

Q: Define tapping fund assets

A: Fund asset: It can be defined as the value of cash, securities, and other holdings related to a…

Q: What are the uses of funds?

A: The uses of fund are as follows: Purchase of fixed asset: If fixed assets such as plant and…

Q: Define the term equal-payment-series sinking-fund factor?

A: Equal payment series sinking fund: In this method of investing mode, the goal is determine the equal…

Q: Sinking Fund under Cash and Cash Equivalents?

A: Sinking Fund is a fund that contains cash which is set aside to pay off a  long term debt or bonds…

Q: How do the funds grow?

A: The major motive of every investor to grow up their investment and the following are the ways in…

Q: Define each of the following terms:c. Reserve borrowing capacity

A: The Reserve borrowing capacity is explained as below,

Q: What are funds transfer pricing?

A: Funds transfer pricing (FTP): It is a method used to estimate how financing/funding improves a…

Q: Comparison of Financing Alternatives?

A: MEANING Alternative financing is a means of obtaining capital outside of the traditional banking…

Q: Define Incremental Borrowing Cost?

A: Incremental borrowing cost is used in the context of the cost of borrowing additional funds.

Q: Define Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: Define reserve borrowing capacity

A: The question is based on the concept of capacity to borrowing of a firm based on the concept of…

Q: What is the effective utilization of funds

A: Introduction: While all aspects of money planning are critical, special emphasis is placed on fund…

Q: What is fund capital?

A: Capital Fund: It is the Excess of assets over liabilities for non-profit organizations is termed as…

Q: : What is the main objective of Balanced Unit Trust Fund?

A: Balanced unit trust fund is a diversification in financing which comprises of different sources of…

Q: How much will be in the fund a

A: Time value of money (TVM) means that the sum money received in the present will have more value…

Q: What is Capital Fund? How is it calculated?

A: Capital Fund: It is the Excess of assets over liabilities for non profit organisations is termed as…

Q: What is the sinking-fund factor? How and why is it used?

A:

Q: Define investments

A: Investments: Investment is defined as an allocation of money with the prospect of some future…

Q: Define mutual fund, and explain the advantages and disadvantages of this popular investment vehicle.

A: A mutual fund is a kind of financial vehicle created of a pool of money collected from several…

Q: (A Equity fund В Bond fund Balanced fund D Money market fund

A: Tax Slip from Canadian  Mutual fund, showing below mentioned Income Capital Gain  $1000 Dividend…

Q: Sinking Fund Method

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: Define the term neutral money.

A: Economics: Economics refers to the social science that deals with the production, distribution and…

Q: Explain term sinking-fund factor (SFF)?

A: Sinking-fund factor (SFF) refers to a ratio that is used to compute the future value of an annuity…

Q: what is the difference between a growth fund and balanced fund?

A: Growth and Balanced mutual funds are important tools of investing with certain different risk return…

Q: What is meant by the incremental cost of borrowing additional funds?

A: Incremental cost as the name indicates is the additional cost which a borrower will incur if the…

Q: Explain the different types of funds categories?

A: Funds can be defined as the pool of money from an individual, company, or cooperation that is…

Q: Explain the sinking fund.

A: A Loan refers to the amount of money taken by one party named borrower from the other party named…

Q: estimate of external funds require

A: Calculation of external funds required-  ERF = (A/S - L/S) ∆S- MS1(1-D) A/S = Total assets/Sales L/S…

Q: What is meant by fund accounting?

A: Fund accounting is a accounting method used by non profits entities or government organisations…

Q: ou fund and

A: NPV= Present value of cashinflows - Present value of cashoutflows.

Q: y cash fund is

A: Petty cash fund is the fund set aside for day-to-day small payments that occurred frequently. Petty…

Q: What is money market fund?

A: Introduction: Money market is a market place where the short-term securities transactions are made.…

Characteristics of Bonds