If a company has some extra cash that is lying idle and wants liquidity and safety in a government investment, what type of investment is likely to be chosen?

Q: What are the investment characteristics peculiar to real estate that make it riskier than investing…

A: Safety Bonds are comparatively safe as if the more the bonds are safer, lesser will be the interest…

Q: What is capital Budgeting? Why are capital budgeting decisions crucial to the long run financial…

A: ANSWER   Capital budgeting is Making decisions having significant future benefits or costs for…

Q: Why might a large corporation want to raise long-term capital through a borrowing money from…

A: Raising money from financial institutions increases the likelihood of finding investors who share…

Q: If you are the CFO of a multinational company. What steps could you take to minimize international…

A: While going global, business must consider all potential risks even before getting business outside…

Q: Which of the following helps to meet the short-term liquidity position of the concern? a.…

A: The short term liquidity refers to the ability to fulfill the current requirement of the company.…

Q: Greater role assumed by government in bailing out financial intermediaries – too big to fail…

A: Financial intermediary is referred as the institution or an individual, which act as a middleman…

Q: Do you think that removing the impediments to a nationwide banking system will be beneficial to the…

A: Nationwide banking system refers to the process of providing financial services to the customers of…

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: It’s a general saying that Companies having proper management of “Future Cash Budgeting” are…

A: Budgets are short-term plans for how firms will function, spend money, and earn income and earnings.…

Q: Unlike other investors, you believe the Fed is going to loosen monetary policy. What would be your…

A: Look if I feel that FED is going to loosen monetary policy then it means FED going to cut rate and…

Q: If an investment project will positively affect the cash flows of other products the firm currently…

A: Cannibalization can be defined as the negative effect on the existing business line or the product…

Q: Can a firm still achieve the maximization of shareholders' wealth even if the government has passed…

A: The maximization of shareholder's wealth is the primary objective of any company because the…

Q: Capital flight can occur due to A) government regulations on interest rates B) inappropriate…

A: A capital flight refers to the movement of capital from one country/ region to other…

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: Why does a company evaluate both the money allocated to a project and the time allocated to the…

A: "Since you have asked mutiple question we will be solving first question for you,If you want any…

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: B)      Analyze why, despite employing various investment appraisal techniques, large investment…

A: Capital budgeting- refers to the formal process used for evaluating potential expenditures or…

Q: offer savers a safer, more liquid investment than a capital market security, even though the…

A: Financial intermediaries are professional firms who have knowledge and expertise and experience so…

Q: which one is correct answer please confirm? QUESTION 28 The business risk of a firm refers to the…

A: Risk means possible outcome from unexpected events. Definition or risk element is differ from person…

Q: Which one of these statements is correct? Accountants record sales and expenses after the related…

A: Evaluation of Investment: there are some methods of capital budgeting to evaluate the investment in…

Q: When any central bank wanted to increase the money supply and loosen credit conditions, what would…

A: In order to increase the money supply and loosen credit conditions, the central bank would purchase…

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

A: There must be a cap for the executive's compensation for those organizations which have accepted the…

Q: A project should be accepted if its internal rate of return exceeds: O the rate of return on a…

A: Internal rate of return is the rate of return after considering time value of money. If the internal…

Q: Why is the capital budgeting decision crucial and important for a firm? State why the capital…

A: Capital Budgeting is a decision making process in which company requires to evaluate long-term…

Q: overnment increases government spending and Central Bank conducts expansionary monetary policy, what…

A: Government and federal bank carry out the market operations and increase or decrease the money…

Q: Much capital structure theory focusses upon minimising agency costs, taxes, and bankruptcy costs. It…

A: capital structure theory says that for any company or investment there is an optimal mix of debt and…

Q: What would happen to a company if it ran out of cash? Explain the importance of good working capital…

A: Working capital is excess amout of current assets over current liabilities.  Cash conversation cycle…

Q: Explain the behavioral issues involved incapital budgeting and identify how companiestry to control…

A: Capital budgeting:   It is the process in which the business uses to determine which proposed fixed…

Q: How can a federal budget deficit increase market equilibrium interest rates and reduce private…

A: The federal budget is the budget prepared by the government for the purpose of considering the…

Q: Why would the U.S. government consider reinstitutingthe “wall” between investment banking and…

A: A commercial bank is a financial institution which provides various financial services like…

Q: hich of the following is leakages from the circular flow in a closed economy?   a. household…

A: Leakage is usually used in relation to a particular depiction of the flow of income within a system,…

Q: What are some arguments in favor of continuing government support of Citigroup? Discuss who would be…

A: Citigroup is an American-based investment banking company founded in 1998 by the merger of Citicorp…

Q: or example you need money from outside and that's why you are looking for the best options of…

A: Answer

Q: Which of the following statements is false? A. Net incomes are not cash flows. Financial Managers…

A: Capital budgeting are the process through which the firm decide which project to take up.

Q: What is the impact of capital controls that restrict mobility of capital across nationalborders on…

A: Capital controls are the controls that are implemented on the international movement of capital.…

Q: differenc

A: Introduction : In simple words, private firms refers to the companies the share of which are majorly…

Q: Explain why cash management is critical for young, fast growing companies and describe how a company…

A: Why cash management is critical Cash is the lifeblood of a business and a business needs to generate…

Q: What factors should you keep in our mind as a financial manager when selecting methods of capital…

A: Capital budgeting is the method through which financial managers are able to make decisions related…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.