the federal fund is more effective than The banker’s acceptance in improving the economic growth. Assess the extent to which you agree with the statement with clarifying which one of these financial instruments you prefer to invest and why.
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the federal fund is more effective than The banker’s acceptance in improving the
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- Treasury bills is the financial instrument that serves as the basis for evaluating rates of return on investment in any economy. Assess the extent to which you agree with the statement with clarifying whether you will prefer to invest in this financial instrument or not.Can fund users (borrowers) such as corporations, raise funds through new issues of financial instruments in the primary market?Which of the following statements is true with regard to financial markets O a. They link the households which save funds and business firms which invest these funds: O b. They work as an intermediary between the savers and the investors by mobilising funds between them c. They allocate funds available for investment into their most productive investment opportunity d.All of the options
- Which of the following is not considered an “other long-term investment?” Sinking fund Preference share redemption fund Contingency fund Tax fundWhich statement best defines a mutual fund? a. It is a fund set aside by a local government to lend to small firms who want to invest in projects that are beneficial to the firm and community. b. It is an institution that sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit. c. It is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks and bonds. d. It is a financial market where small firms agree to sell and bonds to raise funds.Managed funds are often categorised by the type of investments purchased by the fund. These include capital stable funds, balanced growth funds and managed capital growth funds. For each of these funds, discuss the types of investments the fund might accumulate and explain the purpose of the investment strategies. If Jaleel is identified as a risk averse investor, which type of fund would you recommend Jaleel to consider investing?
- Discuss the role of the Public Financial Management Reform Program (PUFMARP)?Which of the following is not an economic purpose of financial instruments? a Allows transfer of fund from entities with excess funds (investors) to entities who needs funds (issuer) for business purposes (e.g. to pay for tangible assets). b Permit transfer of fund that allows sharing of inherent risk associated with the cash flows coming from tangible asset investment between the issuer and investor. c Allows the money market to be the preferred place for firms to temporarily store excess funds up until such time they are needed again by the organization. d All are economic purposes of financial instruments.What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why would an investor prefer to evaluate a fund based on a cash-on-cash return?
- Which of the following acts as an intermediary between the savers and investors' by mobilizing funds between them? a. Financial Markets b. Households c. Financial Instruments d. GovernmentCapital budgeting can be affected by factors such as exchange rate risk, political risk, transfer pricing, and strategic risk. Select a mid- or large-sized business organization and explain how each of these factors can affect its capital budgeting. Which factor poses the greatest threat to your selected organization and why? What measures can stakeholders take to reduce adverse impacts of these factors?Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…