Asset transformation by financial intermediaries is the purchase of a primary asset or securities and their transformation into other assets in terms of risk and maturity.
A type of transformation where banks use deposits (mobilized funds) to generate income by pooling deposits to provide loans. More precisely, asset transformation is the process of converting bank liabilities (deposits) into bank assets (loans). Deposits are inherently subject to withdrawal by customers (depositors) at any time or as set out in the deposit contract/agreement. Loans are bank assets because they represent money that the bank lends and expects to receive back in the form of repayment of principal and interest. As such, banks perform asset transformation by providing long-term and short-term loans, with the interest differential being their transformation returns. Banks and other financial institutions usually perform asset transformation by offering their customers various financial products on both sides of the balance sheet, such as deposits, investment and loan products, etc.
Learn more about risk and maturity.
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Answer:
The answer is: A) A financial market, where nearly 100 million shares of stocks are traded every business day.
Explanation:
The NYSE was founded on May 17, 1792 by twenty four stockbrockers on Wall Street, New York City.
The NYSE is the largest stock exchange in the world, listing over 9.3 million stocks and securities every day.
Once a company registers with the NYSE, their stock become available for public trading. Both physical (a trader doing his job) and digital (remotely by computer) trades can take place.
It also provides several market indexes:
- the Dow Jones Industrial Average,
- the S&P 500,
- the NYSE Composite,
- NYSE US 100 Index,
- the NASDAQ Composite
- and others.
Answer:
Overall cost leadership.
Explanation:
Cost leadership can be defined as to lowest cost that is available in an industry. A cost leader in an industry has achieved a competitive advantage by being able to give the lowest price compared to other businesses in the market
Even where there is high competition businesses with low cost advantage perform well and have good profit margins.
So to avoid overall cost leadership firms convince rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers.
Answer:
a. True
Explanation:
The real option should be used in the decision that made for the capital investment in order to rise the worth of the project. So it rise the capital investment value for the project. Also a real option in a capital asset provides the right to the investing firm but not the liability to purchase or sell or transform the asset at a fixed price
Therefore the given statement is true
Answer:
Apples and Banana
a) Profit maximizing prices:
i) For Apple = $100
ii) For Banana = $40
b) Profits equal revenue minus costs:
i) For Apple = $100Q - (20 + 10Q) = $60Q
ii) For Banana = $40 - (26.5 + 5Q) = $8.50Q
c) To maximize profit, the price to charge is $100 for Apples and $40 for Banana.
d) I would expect to earn a profit of $68.50 for a set of apple and banana.
Explanation:
To maximize profit, Apple and Banana will be sold separately.
But, selling them together, the best profit maximizing prices will be $100 for Apples and $10 for Banana.
At this combined price, the banana still makes a contribution of $5 per unit towards offsetting the fixed cost of $26.50
