Should executive pay at companies that have accepted bailout money be capped by the government?

Q: Suppose your local government decide to tax the interest income on its own bonds as part of an…

A: Interest income is defined as the amount or income which is paid to the entity for lending the money…

Q: Why do corporations pay higher interest rates on debt than the US federal government?

A: Interest rates are charged based on the risk factor allotted to them. Higher the risk higher the…

Q: If the interest rate rises, the   a. quantity of loanable funds demanded by firms decreases   b.…

A: Given, The change in interest rate   To find: Impact of its change on loanable funds from the point…

Q: A headline in the Wall Street Journal stated, “Firms Increasingly Tap Their Pension Funds to Use…

A: The difference between the pension assets and pension liabilities is known as excess assets i.e.…

Q: What will happen to the price of bonds, quantity of bonds and interest rate if bonds become riskier…

A: Bonds: An investment in which an investor lends money to a company or government that borrows the…

Q: If Congress wants to stimulate the economy, explainhow it might alter each of the following: (a)…

A: (a) If congress wants to stimulate the economy, it must reduce the personal income taxes for the…

Q: If a company has some extra cash that is lying idle and wants liquidity and safety in a government…

A: If company has excess cash in hand, it will invest in the liquid funds. So, that the company can…

Q: explain how this will impact the supply of and demand for loanable funds and the interest rate in…

A: Let us consider an initial situation where the tax cuts for the business sector have not yet been…

Q: The primary objective of issuing treasury bills is To manage short-term cash flow deficit To raise…

A: Treasury bills - Treasury Bills are short term debt instrument issued at low or no rate of interest.…

Q: Why do managers of financial institutions care so muchabout the activities of the Federal Reserve…

A: SOLUTION:- Federal reserve system is main body or authority in of the U.S. which takes care of the…

Q: Reserve requirements effectively impose a tax on bank deposits that reduce profits.  Why does this…

A: As interest rates rise, banks could earn more money by lending reserves to borrowers. These profits…

Q: Assume that the government sets a binding price ceiling on the interest rate that banks charge on…

A: A price ceiling is a mandate that the price charged on certain goods or products may not rise or…

Q: How are general long-tern liabilities distinguished from other long-term liabilities of government?…

A: Liabilities are described as the obligations which an entity is required to pay back. These can be…

Q: Which of the following is a tool that is used by the central bank to control the quantity of money?…

A: A central bank is a government-run organization in charge of overseeing the money supply, or the…

Q: Discuss the how government can safeguard against financial instability

A: Financial instability could be a condition when problems within markets, institutions, or the…

Q: Question: How might a firm’s corporate WACC be affected by the size of its capital budget? NOTE:…

A: WACC=Equity×ke+Debt×kdEquity+Debt×100 where, ke=cost of equity kd=cost of debt after-tax.

Q: How does the Fed manage money?

A: The monetary policy of the Federal Reserve System controls the amount of money in circulation. It…

Q: How might a firm’s corporate WACC be affected by the size of its capital budget?

A: Weighted average cost of capital(WACC:) The weighted average cost of capital (WACC) is a computation…

Q: Would a Financial Manager's role (functions) in a corporation increase or decrease in importance if…

A: Financial manager is a person who takes all the decisions related to funds for the firm by…

Q: Are government treasury bills good protection from inflation? Why?

A: TIPS (Treasury Inflation-Protected Securities) offers inflation protection. As assessed by the…

Q: Question: What is the Federal Reserve Board's most popular strategy for trying to impact the economy…

A: INTRODUCTION: The Federal Reserve has recently changed its monetary policy approach to account for…

Q: What is the role of public finance in the economic development of a country?

A: Public Finance deals with the expenditure and revenue of the government. The three main functions…

Q: Explain how the bond market facilitate government (fiscal) policies. How do you think the bond…

A: The bond market is separated into two sections: main and secondary markets. Because transactions…

Q: what is the impact on the Loanable Funds Market

A: Loan-able funds are the amount or the funds available in the loan market for the borrowers. These…

Q: How regulatory role of the government is different from its other roles under Public finance and…

A: Government regulation affects the financial services industry in many ways, but the specific impact…

Q: STRIPS are:   a) Government-backed schemes that allow investors to hedge against market risk.…

A: STRIPS (Separate Trading of Registered Interest and Principal Securities) was established to give…

Q: Interest payments on federal government bonds which are owned by the central bank 1, are recorded…

A: Interest payment is made by the issuer of securities to the buyer of securities in the consideration…

Q: The investment of pension funds should be properly managed so that; a. The company profits increase…

A: Pension funds are there to increase pension benefits of employees and management of pension funds.

Q: The government has to go into debt to meet the needs of the budget deficit or shortfall. Identify…

A: A budget deficit in an economy exists as the expenditures of the country are in excess of the…

Q: The _____ rate is the lending rate at which the largest and most creditworthy corporations borrow…

A: The lending of money is dependent upon the credit rating of a corporation. Higher the rating, lower…

Q: Which statement is not correct?      A. The primary function of the financial system is to…

A: financial system is a the system that allows exchange of funds between financial market and lenders,…

Q: In recent years, ‘direct lenders’ and ‘shadow banks’ have increasingly provided funding for…

A: The lending agencies are the financial institutions that provide funds to the public, business…

Q: why the non-government financial institutions are allowed to operate in our economy.

A: A non- government financial institution are those that does not have full banking license or is not…

Q: Where is the Fed Funds rate as of today? Are there any other steps that can be taken by the…

A: Fed funds rate is termed as the interrst rate that is applied on the loans which financial…

Q: 23 Return Submit Taxes used for Medicare and Social Security An expenditure, such as mortgage…

A: Different financial terms are given in the problem we have to match them appropriately.

Q: Why do short-term debt securities issued by private companies generally offer higher yields than…

A: Short term debt securities are referred as the securities, which are issued within 12 months to the…

Q: What is the best explanation for the recent increase in assets held by mutual funds and other…

A: Mutual Fund is investment option where mass number of people pool their money under professional…

Q: How would an increase in corporate taxes tend to affect an average firm’s capitalstructure? What…

A: A corporate tax is a tax charged on the profits of a corporation. The personal tax is a tax charged…

Q: what is the effects of commercial and non commercial financial services on people of oman and on…

A: A nation's banking sector plays a predominant role in stimulating and sustaining economic growth.…