When financial analysts talk about “firm value” or “market value”, what views do they take? What are the differences between these views?

Q: rates affect business? Consumers?

A: Market interest rate plays extremely essential part in the business and customer spending in light…

Q: As supplier of funds, households invest by purchasing cars or houses. Is it true or false?

A: Individuals or firms who save or make investments in the financial market are the suppliers of funds…

Q: How are financial firms able to make profits?  Under what circumstances are their profits limited?

A: Financial companies profit from investing their funds in firms that have the potential to grow and…

Q: How Forecasting plays an important role in stock market?

A: Forecasting plays an important role in stock market. Forecasting the future changes in stock market…

Q: What does the net investment test indicate?

A: Net investment is the net amount of money a business spends on capital assets, minus the…

Q: Would a dollar tomorrow be worth more to you today when the interest rate is 20% or 10%?

A: Given the interest rates are 20% and 10%.

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: When interest rates decrease, how might businesses andconsumers change their economic behavior?

A: The interest rate is the rate charged by the lender on the asset lend by them. The asset lend can be…

Q: Providing tax shelters through investment is one of the main functions of the financial system. *…

A: Tax shelters are necessary, despite the fact that they are sometimes seen negatively. Individuals…

Q: would bonds still be a good option for investment if interest rates are negative?

A: Negative-yielding bonds are monetary instruments that cause buyers to lose cash.  They are typically…

Q: Do the interest rates reflect the market interest rate?

A: An amount of money due per period as a proportion of the loan, deposit, or borrowing amount is…

Q: What is Investing Activities? Give some examples?

A: Investing activities refers to those activities which relate to the sale and purchase of long-term…

Q: Why might an investor prefer to invest indirectly rather than directly?

A: Direct or indirect investment both leads to pay offs, it depends on the investor about what is…

Q: The relationship between the price of the bond and the market rate of interest rate? * a. Inversely…

A: Par value of a bond is the amount you will get at the time of maturity of the bond The market price…

Q: What are some drivers for companies to engage in the circular economy?

A: There are some drivers for companies to engage in the circular economy:- when companies start…

Q: What is the financial market, what does it do in terms of saving investment and interest rates

A: A market is a place where the exchange of goods and services takes place between the consumers and…

Q: what vital role do demand and supply play in the stock exchange?

A: The Law of demand states the inverse relationship between the quantity demanded of a good and the…

Q: How is saving important?

A: Saving: - Saving is that part of income that is not consumed or kept as reserves by the people in an…

Q: A company has announced a profit, but why is the price of stock still falling? Is the market…

A: The degree to which market prices represent all accessible, relevant information is referred to as…

Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…

Q: Young people with little wealth should not invest money in risky assets such as the stock market,…

A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…

Q: Choose the correct answer. 1. The following life situations affect and influence one's personal…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which statement explains how people working in their own self-interest produce goods, services, and…

A:

Q: Please describe briefly what is meant by Goldilocks economy?

A: Those economy which has low inflation rate and enjoy sustained economic growth is called Goldilocks…

Q: What are the most liquid assets?

A: A liquid asset is that type of asset which can be easily converted into cash in a very short period…

Q: Why is investment is a better option other than savings?

A: The income remaining from the consumption expenditure is termed as the saving of the people. It can…

Q: What are the pros and cons of businesses using predictive models to make decisions?

A: The predictive models are the models which would result in the prediction of the sales or the…

Q: Why is investment is a better option than savings?

A: An individual’s income after consumption is called savings. It means money is held in a secure…

Q: What is the difference between an asset and liability?

A: In economics and also in business(accounting), it is vital to weigh the assets that a company owns…

Q: Why do we use the present value of an asset or investment as basis for its value?

A: Present Value:- Amounts of money presently are valued higher than the same quantity in the future,…

Q: Q1. What is an index? How does an index help an investor?

A: Mutual funds and exchange-traded funds are frequently measured against indexes as benchmarks (ETFs).…

Q: What is stock exchange

A: Capital is a very important factor while setting up any business. Capital refers to the amount of…

Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?

A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…

Q: Why is ownership of a corporation the easiest to transfer?

A: A corporation  varies from a sole proprietorship and a partnership in that it is a separate legal…

Q: If interest rates increase in financial markets, then...

A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…

Q: What is importance of financial markets for the productive capacity of the economy?

A: The economies work with the motive of increasing, or enhancing their overall economic growth, and…

Q: What is the meaning of Net Present Worth?

A: The net present worth also known as the net present value calculated the difference between the…

Q: What is the relationship between interest rates and business investment?

A: To determine the relationship between interest rates and investments.