The main sources for financial innovation

Assignment Help Financial Management
Reference no: EM131621945

1. The following are the main sources for financial innovation except

A. avoidance of costly regulation

B. promotion of bank regulations

C. changes in demand conditions

D. changes in supply conditions

2. Which of the following financial innovations helped banks reduce their? interest-rate risk that came from the increased volatility of interest rates since the? 1970s?

A. ATMs

B. adjustable-rate mortgages and financial derivatives

C. bank holding companies

D. junk bonds and commercial paper

Reference no: EM131621945

Questions Cloud

Probabilities are called the risk neutral probabilities : The current price of a particular stock is $80. These probabilities are called the “risk neutral” probabilities
Deliverable treasury bond : At the expiration? date, a deliverable Treasury bond is selling for 101 but the Treasury bond futures contract is selling for 102.
Less control over the composition of the monetary base : "The Fed can perfectly control the amount of the monetary base, but has less control over the composition of the monetary base."
Find the new value for the money supply : Use the money multiplier to find the new value for the money supply if open market operations increase the monetary base by ?$100 billion.
The main sources for financial innovation : The following are the main sources for financial innovation except
Results to the T-account entries for the Federal Reserve : An open market purchase of a $100 government security from a bank results to the T-account entries for the Federal Reserve of
The firm cash conversion cycle : A firm has arranged for a lockbox system to reduce collection time of accounts receivable. The firm's cash conversion cycle.
Hypothetical situations-face of financial pressures : Following are eight hypothetical situations in which you have to make a decision that will affect you and members of your work group.
What goals will you set for client acquisition : What goals will you set for client acquisition and at what duration?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield to maturity

A Treasury STRIPS is quoted at 61.159 and has 10 years until maturity. What is the yield to maturity?

  Excess of the number of free transactions

Pelican Point Financial Group’s clientele consists of two types of investors. The first type of investor makes many transactions in a given year and has a net worth of over $1.5 million. These investors seek unlimited access to investment consultants..

  Determine the increase in the firms average cash balance

Assuming that Exman could reduce the time required to process customer payments by 1.5 days, determine the increase in the firm's average cash balance.

  Bonds assuming a market rate on similar risk bonds

Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid annually. Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid semi-annually.

  What is the current yield of bond-current yield of bond

What is the current yield of the bond? The current yield of the bond is %.

  Trend or force in each of specified microenvironments

Identify one trend or force in each of the specified microenvironments (the company, suppliers, marketing intermediaries, competitors, publics, and customers) and describe how it would affect 'your' company.

  Calculate standard deviation of expected returns for stock

Stocks X and Y have the following probability distributions of expected future returns.. Calculate the expected rate of return. Calculate the standard deviation of expected returns for stock X (y=20.35%) and the coefficient variation for stock Y. Is ..

  An investor purchased a convertible bond

An investor purchased a convertible bond for $6000 four years ago. The bond has a face value of $10,000 and a bond interest rate of 8% payable semiannually. The investor can sell the bond now for $7500. What should she do if her MARR is 12% per year ..

  Which alternative should the investor choose

Alternatively, a wraparound loan for $150,000 can be obtained at a 12 percent rate and a 15-year term. All loans are fully amortizing. Which alternative should the investor choose?

  Determine the profit or loss per contract

When this position was closed out, the quoted price was 94.75. -Determine the profit or loss per contract, ignoring transaction costs.

  Modified internal rate of return investment rule

All of the followings are disadvantages of the modified internal rate of return (MIRR) investment rule except for:

  Macaulay duration and modified duration

A Treasury bond that settles on October 18, 2013, matures on March 30, 2032. The coupon rate is 5.95 percent and the bond has a 5.36 yield to maturity. What are the Macaulay duration and modified duration?Modified duration and Macaulay duration

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd