Explanation:
First, Depository institution
Institution that collect money from people and pay interest . You may can deposit your cash and withdraw it anytime . If you put longer they pay interest. Interest may be fixed or variable. On other words, from that institution you can send your money to other people ,can get credit or debit card to withdraw or shopping. They gave you loans. Such institution are:
Commercial bank , Saving institution,credit union and so on.
In last remember that those who pay you interest ,give loan facilities, business transaction and collect your money they are Depository. They have 3 types of account for people who want to deposit their money. 1. Current account 2. Saving Account 3. Fixed
Non Depository institution
Where you cannot put your money and withdraw it . You would not get interest. They are intermediary between borrowers and saver. They are:
Mutual funds: where you buy scheme in units. It like investment . Then they pay you bonus and even you can sales it on market. Don't confuse mutual funds collect money from public invest it on market and share their profit.
Insurance companies: they insure your belonginess. They pay when your things goes beyond the normal level. Like. Car theft,goods damage.
Pension fund:
Security firms: investment companies ,broker house.
I’d say Outcome visualization since it involves seeing yourself achieving your goal.
Answer:
A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.
Explanation:
Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.
For example, not keeping too much cash in current account but investing them in interest-earning investment assets.
Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.
Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.
Option D is obviously false and does not describe proper liquidity management.
It should be noted that in the PPC, the downward sloping line 'ab' is the production possibility curve.
<h3>How to illustrate the information?</h3>
In the diagram, since point 'A' falls on the PPC itself, it represents the full employment of resources. Point 'A' represents the combination of 30 million bananas and 10 million robots.
Opportunity cost producing a robot = Total bananas possible / Total robots possible
Opportunity cost producing a robot =60/20
Opportunity cost producing a robot = 3 bananas
The area outside PPC represents the unattainable combinations of two goods.
During the recession, the resources are inefficiently used and the production combination is represented by point 'B' which falls below PPC When the production technology improves only for one good and not for the other, the PPC rotates
Marginal opportunity cost of a robot = 80 million bananas / 10 million robots
The marginal opportunity cost of a robot = 8 bananas
Opportunity cost of 2 million robots = 8 bananas × 2 million
The opportunity cost of 2 million robots will be 16 million bananas.
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Answer:
A) high magnitude of consequences.
Explanation:
Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a high magnitude of consequences.
The customer is the king in the market, the company can not afford to lose reputation by a delivery faulty product. Especially in the era of social media, these mistakes can cause loss of market share and can potentially damage the credibility of the company´s product, which could take lot of time to rebuild. It may also affect other product of the company to lose reputation.