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What you meant by monetary function in financial system?
A significant function of a financial system is the monetary function. The introduction about money in the economy enables savers and spenders to divide the act of sale by the act of purchase and permits them to overcome the chief problem of barter, that is the ‘double coincidence of wants’ (each of the two parties included in a transaction has to want concurrently the good the other party is giving to exchange). The financial system gives a variety of payment mechanisms for example, cheques, credit cards and debit cards to make possible one party to pay another.
Ask question #Minimum what are the challenges that a finance manager may face?
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Evaluation of Suppliers or Vendors Vendor selection or evaluation is usually based on comparison along dimensions Inventory management that are thought to be important. It
Debenture Finance A type of long term debt raised after a company sells debenture certificates to the holder and raises finance in return. The term debenture has its source fr
Current cost of a bond: You know that the after-tax cost of debt capital for Bubbles Champagne is 7 percent. If the firm has only one issue of five-year maturity bonds outstanding,
What is cash flow?
Disadvantages of Payback Period 1. Does not receive into account time value of money and supposes that a shilling obtained in the 1 st year and in the N th year have the sim
Advantages of Overdraft Finance 1. It is useful in financial crisis such an accountant cannot forecast because of abrupt fall in profits so liquidity problems. 2. In
Below is information provided for two companies, A and B. Assuming a risk-free rate of 2.5%, an effective tax rate of 40%, and a market risk premium of 5.5%, estimate th
Suppose an entrepreneur owns a firm which has two production opportunities. Technology A generates an output (net profit) of 10 in state 1, an output of 20 in state 2, and an outpu
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