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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.
What are the Features of Stock Exchange The key features of stock exchange are as below: (1) Organised Market: Stock Exchange is an organized market. Each stock exchang
What is cash deficit?And what is cash surplus?Describe each of them in detail.
You are asked to select three variables for a sensitivity analysis of weighted average cost of capital, what would you choose and why? Weighted average cost of capital is th
Define two instances of Efficiency Ratio, Liquidity Ratio, Leverage Ratio? 1. Define two instances each of 'Efficiency Ratio', 'Liquidity Ratio', 'Leverage Ratio' and 'Prof
Petroleo Brasileiro (PBR) has just issued 1M one year bonds. Each bond hasa face value of1,000 Reais. Owners of the bonds are entitled to receive $R 1000 back at the end of the yea
Types of Partners 1. General Partners -Unlimited active and liability in participation in partnership activities. 2. Limited partners - Limited liability in the management of
Setting of Optimal Cash Balance Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone
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
Bases of Share Valuation Share valuation can be done on the basis of income and asset values. On the basis of income still a share will be entitled to two forms of income. For
Basic economic order quantity (EOQ) model This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions: The dem
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