What distinguishes the money market from the capital market

Assignment Help Financial Management
Reference no: EM131190677

What distinguishes the money market from the capital market?

The money market deals with instruments valued at $1 million or less, whereas the capital market deals with larger instruments.

The money market deals with short-term instruments, whereas the capital market deals with long-term instruments.

The money market deals with stocks, whereas the capital market deal with bonds.

The money market deals with cash instruments, whereas the capital market deals with real assets. None of these statements is correct.

Reference no: EM131190677

Questions Cloud

Were they treated responsibly by the standards : Who were the most important stakeholders of the American oil industry in John Rockefeller's time? Discuss ONE of the stakeholders and their viewpoints. Were they treated responsibly by the standards of the day? By the standards of today?
Present value of a four period annuity : What is the present value of a four period annuity of $400 per year that begins three years from today, if the discount rate is 12%
Why tiebout model solve problems with preference revelation : Why does the Tiebout model solve the problems with preference revelation that are present with Lindahl pricing?
What are the energies stored in and in these conditions : Give the permanent steady state equivalent of the circuit. Determine the final value noted when and the value of constant equal to. What are the energies stored in and in these conditions?
What distinguishes the money market from the capital market : What distinguishes the money market from the capital market?
Describe the inferential tests that were used : Describe the inferential tests that were used (e.g., t-tests and chi-squares). Given the p-values related to the tests, how do you interpret the results? Are statistically significant findings also clinically significant? What are the recommendati..
What is the effective taxable income : Suppose your firm had the following taxable income amounts: 2012 $4 million 2013 $4 million 2014 $4 million 2015 ($5 million) operating loss After you "carry back" the operating loss, what is the effective taxable income for 2014?
What are projected sales for the last year before the sale : elebNav, Inc. had sales last year of $650,000, and the analysts are predicting a good year for the start-up, with sales growing 19 percent a year for the next three years. After that, the sales should grow 7 percent per year for two years, at which t..
Derive transition table for asynchronous sequential circuit : Derive the transition table for the asynchronous sequential circuit shown in Fig. P9-2. Determine the sequence of internal states 1, Y, for the following sequence of inputs 44: 00. 10. I1.01. II. 10.00.

Reviews

Write a Review

Financial Management Questions & Answers

  Explain and offer the strengths-weakness-opportunities

You are the administrator of a major regional not-for profit hospital. At the latest board meeting, certain members of the board noted that an increasing amount of the competitor hospitals are pursuing "other sources of revenue". Please explain and o..

  What is the company cost of equity

The Muse Co. just issued a dividend of $ 2.75 per share on its common stock. The company is expected to maintain a constant 5.8 percent growth rate in its dividends indefi nitely. If the stock sells for $ 59 a share, what is the company’s cost of equ..

  What is NPV of investment under period of rising inflation

You are interested in an investment project that costs $40,000 initially. The investment has a 5-year horizon and promises future end-of-year cash inflows of $12,000, $12,500, $11,500, $9,000, $8,500 respectively. What is the NPV of the investment un..

  How do you calculate compounding interest

Mr. Miser loans money at an annual rate of 20 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans? How do you calculate compounding interest?

  Calculations within capital budgeting

Define and discuss implementation of the following calculations within capital budgeting: IRR, NPV, and Marginal Cost of Capital. When would these be used and what do they tell us?

  What is maximum initial cost company would be willing to pay

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.72 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. What is the maximum initial cost the co..

  Introduction of comprehensive credit reporting

Explain the difference between bank credit risk and bank capital risk - What is the difference between lending to individual borrowers via a residential home mortgage compared to other types of consumer lending?

  Semi annual bonds outstanding-what is the yield to maturity

Signature Sweets, Inc. has 10 percent semi annual bonds outstanding with 20 years to maturity. The latest quote on these bonds is 120.00 percent of the face value. What is the yield to maturity?

  There is expected to be no salvage value for the equipment

Lewis Industries looking at a project that will require a $100,000 investment in fixed assets and another $15,000 in net working capital, which will be recovered at the end of the project. The project is expected to produce sales of $110,000 with ass..

  Calculate the weights for debt-common equity

The Imaginary Products Co. currently has debt with a market value of $275 million outstanding. The debt consists of 9 percent coupon bonds (semi annual coupon payments) which have a maturity of 15 years and are currently priced at $1,054.14 per bond...

  Assets and costs are proportional to sales

The most recent financial statements for Dockett, Inc., are shown here (assuming no income taxes): Income Statement Sales $ 8,600 Costs 5,630 Net income $ 2,970. Assets and costs are proportional to sales. Debt and equity are not. No dividends are pa..

  Major reasons for a manager to understand cost behavior

Which one of the following is not one of the major reasons for a manager to understand cost behavior?

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