Q: What is asset and liability management?
A: The process of ALM (Asset and liability management) is the process used to manage financial risks…
Q: What are the characteristics of a liquid asset? Give some examples.
A: A liquid asset is a type of asset that can be quickly converted into cash.
Q: What is notional principal?
A: This is a type of derivative used by two parties under a contract to exchange the consequences (net…
Q: What is physical asset market?
A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…
Q: What is imputed interest?
A: Interest: Interest is a charge against the amount due, Interest is paid on the amount borrowed as a…
Q: What is a derivative security?
A: Financial Instruments: It represents assets that are traded in the financial markets and are…
Q: What are the advantages of balance sheet?
A: Financial Statement: A financial statement is the complete record of financial transactions that…
Q: Identify the MARR (or external interest rate)?
A: A minimum acceptable rate of return (MARR) is the all-out advantage that a speculator wants to pick…
Q: What are the benefits of interest tables?
A: The question is based on the concept of interest table.
Q: What does liquidity mean?
A: Liquidity:
Q: What is reinvestment rate risk?
A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…
Q: How much is the estimated payment to liabilities with priority?
A: The determination of estimated payment to Liabilities with priority is shown hereunder : The…
Q: What is asset
A: Assets are those items that provide value for money and future economic benefit for an organization.…
Q: What is lessor?
A: A lease is the agreement between two individuals. Under the lease agreement one individual provide…
Q: What is risks and interest rate
A: Risks and interest rate are tied together in case of fixed income instruments like bonds.
Q: What are Fixed assets?
A: The assets are classified as current assets and fixed assets. The current assets are the assets…
Q: What is the essential concept in understanding compound interest?
A: Compound interest refers to the addition of interest amount to the principal. It is generally…
Q: Explain the term Interest?
A: Interest is a compensation that one has to pay for using another entity's or person's funds. The…
Q: What are funds transfer pricing?
A: Funds transfer pricing (FTP): It is a method used to estimate how financing/funding improves a…
Q: How is Compound Interest calculated?
A: Compound interest refers to the addition of interest amount to the principal. The concept of…
Q: What is securitization?
A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…
Q: What is collateral? Give an a example.
A: Consumer Loans: This type of loan are user by common people to finance their personal expenditure or…
Q: Explain the term Collateral.
A: Assets refer to those resources which have some economic value held by a corporation, individual or…
Q: What is liquid asset?
A: A liquid asset can be described as the asset which can be sold into the market easily and can be…
Q: Define the term s liquidity position?
A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…
Q: What is liquidity (security)?
A: Introduction: Liquidity is associated to rapid access to cash. Persons hold assets or security, and…
Q: What is EBITDA?
A: EBITDA is a metric which is used to measure the company's profitability. Though there is no legal…
Q: What is the EBIT?
A: The income generated by a business in the course of normal operations, after deducting the direct…
Q: what is pooling of Interest Method?
A: The accounting method that governed how the balance sheets of two companies that were merged would…
Q: What is capital assets?
A: Capital asset means property of any kind like land, machinery, building, computer, vehicles,…
Q: What is Asset Management?
A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…
Q: What is the discounting process?
A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…
Q: What is liquidity?
A: Cash is said to be the most liquid asset of the business. Assets are said to be highly liquid if…
Q: What are fictitious assets?
A: Fictitious assets: Asset formed by an accounting entry (and included under assets in the balance…
Q: Explain Property Type Swap?
A: Answer: Swap alludes to exchange with another between the parties involved in one monetary…
Q: Define risk-free asset?
A: Risk-free means that anything which does not have any kind of risk associated with it. They are free…
Q: legal reserve
A:
Q: What is another way of saying "Interest earned on interest"?
A: "Interest earned on interest" means the interest earned on the interest amount which was earned on…
Q: What is Net realizable value?
A: Net realizable value means the amount that could be received after deducted all incidental expenses…
Q: Which of the following is an example of a financing activity?
A: There are mainly three categories for the sources and uses of cash that are: operating activities,…
Q: Illustrate the methods of calculating Interest?
A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…
Q: How does compounded interest work?
A: compound interest : it is the interest on loan calculated based on principal and interest.
Q: What is finance
A: Finance brings a business to life. Finance is important for every part of a firm's operations.…
Q: finance?
A: Business is an activity carried out with the aim of earning profits. The main objective behind…
Q: Describe the methods of calculating interest?
A: In the finance industry, every decision revolves around the interest rate. This is a crucial…
Q: What are the methods of calculating Interest?
A: Interest is an additional amount received on a deposited amount for a deposited period. It increases…
Q: What is asset specificity?
A: It is a term which is specially used to depict the inter party relationships amongst transactions
What are collaterals?
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