Explanation:
A money market fund is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents. Though not quite as safe as cash, money market funds are considered extremely low-risk on the investment spectrum.
Answer:
7%
Explanation:
nominal interest rate = real interest rate + expected inflation rate
nominal interest rate = 5% + 2% = 7%
Usually the nominal interest rate has four major components:
- real interest rate: the net interest rate received by a lender or an investor
- inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
- liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
- credit risk: possibility of the borrower defaulting the loan
Oracle is a Database application
Answer:
Explanation:
1. Start tracking your spending habits.
2.Get on a budget.
3. Re-evaluate your subscriptions.
4. Reduce electricity use.
5.Lower your housing expenses.
6. Consolidate your debt and lower interest rates.
7.Reduce your insurance premiums
8. Eat at home.
Answer:
Explanation:
USD GBP Prefers
Dell 7 9 GBP
Virgin Airlines 8 8.5 USD
In a swap exchange Party A will have a relative preferred position in one money and Party B will have a bit of leeway in the other cash. For this situation Dell has a similar bit of leeway in USD getting rate and Virgin has a preferred position in GBP acquiring rate.
Additionally note that dependent on the FICO assessments of the organization the acquiring rate will vary pulling in parties for a swap exchange.
Virgin would borrow £10 million for two years and Dell would borrow $16 million for two years. The two companies would then swap their proceeds and payment streams. Then they enter into a swap agreement to exchange their cash flows to get their preferred currency rates with an interest rate mutually benefiting both the parties.
