QUESTION 4 Which of the following statements are correct? Pick two correct answers. Deposits are created. When commercial banks make new loans to households and firms When John takes pile of cash from under his matress and pays it into his current account at the bank By the Bank of England By the Financial Conduct Authority (FCA)
Q: Riley Co. has a DOL of 140% and a DFL of 113%. If sales decrease by 12%, what is the expected…
A: Solution: We know, Degree of Operating Leverage (DOL) measures the percentage change in operating…
Q: Yield: 5% Coupon Rate: 4% Term: 3 Yrs Frequency: Semi-Annual Face Value: PHP10,000.00 Issue Date:…
A: Price of bond is present value of coupon payment and present value of par value of bond that is…
Q: Explain each of the investment instruments stated below that offered by financial institutions.…
A: Futures and Options are derivative products. The main purpose or objective of derivatives is to…
Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 million by…
A: Solved using Financial Calculator N = 65-20+1 = 46years I/Y = 10 FV = 3 million CPT PMT = 3,788.86
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…
A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…
Q: car for $18,500. Compare the two loan offers by finding the monthly payments for each and…
A: Loans are to be paid equal monthly payment that carry the payment for interest and payment for…
Q: A $67,000 loan is taken out on a boat with the terms 9% APR for 36 months. How much are the monthly…
A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…
Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…
A: More than profits, it is important to analyze the cashflows of a business. The cashflow position of…
Q: the trade discount and trade discount rate.
A: List Price Net Price Trade Discount Trade Discount Rate 65.00 50.00 15.00 23.08% 115.00 98.00…
Q: Which of these people is MOST LIKELY to be offered a discounted rate on his or her homeowners or…
A: We have to read the passage an answer the question following it.
Q: b) The new shares which are issued in a rights issue are offered to the existing shareholders at…
A: Right Shares are those shares which are issued to the existing shareholder of the company instead of…
Q: Average collection period of JFC * STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3…
A: Given, The total sales of JFC is 90,671. Total receivables is 7621
Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…
A: Expected share price using price ratio analysis.
Q: payback period? What ar
A: Cashflows refer to the movement of cash as inflow and outflow in the company. It shows the company's…
Q: On September 6, Irene Westing purchased one bond of Mick Corporation at 91.75%. The bond pays 5.25%…
A: Bonds are the debt securities which are issued by the companies or the government to arrange the…
Q: 12. Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of…
A: Annual payment (P) = $4700 Interest rate (r) = 7.3% Number of annual payments (n) = 4
Q: 18. The ratio of the prices of two houses was 16 : 23. Two years later when the price of the first…
A: Ratios are used to compare two variables. They are useful to compare values and give a broad picture…
Q: Based upon this information, Budget Wings' current weighted average cost of capital (WACC) is…
A: WACC: It represents the company's average cost of capital and is computed by the sum of the…
Q: urn on a two asset portfolio and what are its variance and standard deviation. What is R squared?…
A: By multiplying the weight of each asset by its projected return, the expected return is computed.…
Q: Could I Industries just paid a dividend of $1.25 per share. The dividends are expected to grow at a…
A: Dividend discount model refers to a stock valuation model which is used by the company for…
Q: areq is about to make his dream of a house of his own ome true. For years he has been saving for…
A: Down Payment = 1,500,000 * 10% = 150,000 Loan Taken = House Price - Down-payment = 1,500,000 -…
Q: An annuity loan of 120 000 € is taken for 15 years with monthly payments. The interest rate of the…
A: Time Period 15 Points in the beginning 0.90% Interest in the beginning 0.22% Interest after 1…
Q: 3860. How much she st in each fund?
A: A well-balanced portfolio includes a mix of assets such as stocks, bonds, real estate, and gold…
Q: According to the information above, which company is undervalued? Why?
A: Since the market price of Dunkin;s conuts should be $48.96 but actual price is $48.85,so the…
Q: The following information is available on two mutually exclusive projects. Project…
A: Project Year 0 Year 1 Year 2 Year 3 Year 4 A…
Q: Technical Analysis (the practice of analyzing past stock price and volume data in order to predict…
A: The efficient market hypothesis (EMH), also known as the efficient market theory, claims that stock…
Q: 4 6 If company A has accounts receivable turnover of 3.5 while company B has an accounts receivable…
A: Accounts Receivables turnover ratio is the ratio of net credit sales to the average accounts…
Q: What is Debt to equity ratio of PETRON?
A: The formula for the calculation of debt equity ratio is as follows: Debt equity ratio=Debt Equity
Q: BMW just paid an annual dividend of 2 per share. Management has promised shareholders to increase…
A: The current price of the stock can be calculated as per the dividend growth model
Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…
A: Given: Particulars Amount Par value (FV) 1000 Debenture interest 10% Years(NPER) 3
Q: Explain the role of the Central Bank and critically evaluate the advantages and disadvantages of the…
A: The central bank performs a lot of roles which are discussed below: It maintains price stability.…
Q: At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to…
A: Quarterly deposit (P) = P10,400 Interest rate = 10% Quarterly interest rate (r) = 10%/4 = 2.50%…
Q: Good Credit is between O 680-700 O 620-800 O 650-700
A: Credit score determines the credit worthiness of customers. A good credit scores enables the…
Q: The ex-dividend price for a share in an index tracking fund is $700. One year ;ater it stands at…
A: Initial Price at t=0 $700.00 Price after 1 years $900.00 Price After 2 years $750.00 Number…
Q: a. What minimum amount of shares must Nancy purchase to have a sales charge of 5.50%? (Round up to…
A: Fund generation or fundraising refers to a process which is used by the company to raise and gather…
Q: 23. You have just been offered a contract worth $1.12 million per year for 7 years. However, to…
A: The maximum capital investment that can be made for a project is the present value of all returns…
Q: . A certain sum of money is divided among A, B, C in the ratio 2:3:4. If A's share is $200, find the…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: The manufacturing firm Rebo is considering a new capital investment project. The project will last…
A: NPV is calculated by deducting present value of cash outflows from present value of cash inflows.
Q: A 180-day note was signed on June 11 for $24, 700. The note has a rate of 9.5%, compounded annually.…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…
A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…
Q: Verga plc has 10,000,000 shares and £16,000,000 current earnings, from which it distributes 50% as…
A: Here,
Q: CostaCap Corporation's capital structure (market value weights) consists of 50% common stock, 10%…
A: Capital Pre tax cost Weight Tax rate Debt 3% 40% 25% Equity 8% 50% Preferred stock 5% 10%
Q: Determine whether this investment is an attractive option for the company.
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: Explain each of the investment instruments stated below that offered by financial institutions.…
A: Investment instruments Investment instruments also known as financial instruments is a document that…
Q: Air just paid an annual dividend of 0.2 per share. Its dividend is expected to double for the next…
A: Dividends are the distribution of a percentage of a company's earnings to its shareholder class, as…
Q: How much will the company pay in total if they are going to pay all these costs today? Interest for…
A: The amount the company will pay today can be found using the present value concept. By discounting…
Q: internal rate of return (IRR): Group of answer choices will always lead to the same decision as…
A: IRR is a method used for investment appraisal. It is the rate of return at which the present value…
Q: Average payment period of PETRON STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3 COMPANIES…
A: Average payment period is the time taken to pay accounts payable dues. It can be calculated Average…
Q: the dividend discount model what is the value of the Jasmine limited share if the firm's cost of…
A: The present value of a stock can be found using the two stage dividend discount model. Increase the…
Q: 6b. An initial $2000 investment is made that returns profits of $1000 and 1500 in the first and…
A: Here, Initial Investment is $2,000 Profit in Year 1 is $1,000 Profit in Year 2 is $1,500 Inflation…
Step by step
Solved in 2 steps
- Q1. As Ms. Sara prepares for her trip to London, she reviews a typical bank balance sheet. What types of assets does a bank own, and what types of liabilities fund them? Q2. Explain why financial institutions such as banks are necessary in an economy.a. Illustrate and record the following events on a T account John deposits his $10,000 paycheck into his checking account at Chase Bank b.Chase Bank deposits the check at the Fed and Fed collects the funds for Chase Bank c.What happens to a bank's reserves when it receives a deposit? d.John withdraws $2000 cash and pays his rent. His landlord deposits the $2000 in Citi BankWhen a bank grants a consumer loan to someone, it leads to: a. an indirect flow of funds O b. a rise in the bank's liabilities Oc a direct flow of funds Od. a rise in the bank's interest expense
- Question 11: Which statement about making deposits is TRUE? Answer: A. B. C. D. O Funds received through sales are held in Savings, and you must move them to Checking. Funds received through sales are held in Undeposited Funds, and you must move them to your bank account. O Funds received through sales are held in Accounts Payable, and you must move them to your bank account. Funds received through sales are held in Accounts Receivable, and you must move them to your bank account.Show how each of the following would initially affect a bank’s assets liabilities. Someone makes $1000 deposit into a checking account. A bank makes a loan of $1000 by establishing a checking account for $1000 The loan described in part (B) is spent. A bank must write off a loan because the borrower defaults.Question Y O1 3U. Which of the following facility a Mobile Banking customer cannot use? O Facility for using banking facility from anywhere O Option to pay utility bills and Transfer of funds between accounts of same bank and other banks O Facilities of withdrawing cash anywhere anytime O Balance Enquiries and facility for shopping and paying through mobile
- 2. On your mother's birthday, you bought her a new iPhone from Best Buy. Assume that you made- your purchase by writing a check for $900, and the store promptly deposited your check in its bank. i. Using T-accounts, show the effect of this transaction on your bank and on the Best Buy's hank (after your check is processed and cleared by the Federal Reserve). ii. What happens to your bank's reserves? What happens to the reserves of Best Buy's bank? iii. Assuming the reserve requirement is 10 percent and your bank was holding no excess reserves initially, what is the level of excess reserves in your bank after the transaction? iv.List two possible methods your bank can employ to remedy its reserve deficiency.5. Mr. Ahmed has purchased goods from Khalid for OMR 1000. Mr. Khalid requested that instead of paying cash, better to issue him a cheque. Mr. Ahmed write a cheque for OMR 1000. Mr. Khalid lost the same cheque while travelling. What procedure is recommended in this situation? Write any four differences between traditional banking and modern banking Why KYC is mandatory for the banks while opening a bank account?Question 1 Please use an example to explain the process that the banking system uses to create money. Assume in your example that Bank 1 receives $1,200 from Firm A and sets up a checking account (demand deposits) for Firm A. Three firms, i.e., Firm A, Firm B, and Firm C, will be included in the process. Also assume that Bank 1, Bank 2, and Bank 3 all hold 12% in reserves and lend out the remaining demand deposits to corporations to earn interests.
- Part 1- Questions (Short Answer) 1. How does a savings account differ from a checking account? 2. What is the use of a deposit slip? 3. What is the use of a withdrawal slip? 4. What is a bank check? 5. What are the information required in filling up a bank check?Match up the following statements and answers. An answer may be used more than once. Whose liabilities are bank notes held by the general public? Choose... Whose assets are reserves with the central bank? Choose... For households a home mortgage is a Choose... for commercial banks a home mortgage is a Choose... for commercial banks a deposit held by the general public Choose... is a for a corporation a bank loan is a Choose... an example of a household's tangible assets is a Choose... if I borrow money using my house as collateral this is a v Choose... mortgage, an asset of a commercial bank the central bank liability house asset mortgage, a liability of a commercial bank commercial banks6 Ted owns Ted's Blankets. Ted asks you to explain how he should treat the following reconciling items when reconciling the company's bank account. The bank charged to our account a check written by another company. A debit memorandum for a bank service charge. Outstanding checks. A deposit in transit.