Answer:
The answer is: C) hold only a fraction of their assets in the form of reserves against their deposits.
Explanation:
Fractional reserve banking refers to a banking system in which banks keep as reserves only a percentage of the money their clients deposited. By doing this, banks are able to use the rest of their clients' funds to make loans and other financial operations, therefore creating "new money". For example, a client A deposits $100, the bank keeps in reserve $10, and loans $90 to a different client B. Client A's $100 have created an extra $90 in new money.
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
Answer:
The correct answer is letter "D": may sell some of your securities to repay the margin loan.
Explanation:
A Margin Call is issued when the equity in a margin account falls below a certain level. In the U.S. this level is set by the Federal Reserve (Fed) Board "Regulation T". Many brokers have their margin requirements known as "house requirements" usually with maintenance levels of 30 to 40%.
When a margin account falls below the margin limit and the trader ignores this, the broker can sell some of the securities of the trader to cover the margin losses.
Answers
partner with branded companies to be featured on their
and publications
Explanation:
Luwam is convinced that her product idea has great potential. She has decided to produce the product herself, but will use other companies who specialize in storing and transporting products to help her move the product from where it is manufactured to the final consumer. These specialists Luwam uses will be part of her: "channel of distribution".
<h3>What is channel of distribution?</h3>
A product or service could travel down a distribution channel to reach the market. A corporation can sell to customers directly through a direct distribution channel, which is typically a website or physical store.
Some characteristics of channel of distribution are-
- A distribution channel is a network of businesses or middlemen where the final consumer buys a product or service.
- Wholesalers, retailers, distributors, and the Internet are examples of distribution channels.
- The manufacturer sells directly to the customer through a direct distribution channel. Before the product reaches the customer, indirect routes use a number of middlemen.
- The product, promotion, and price are other components of a company's marketing plan, which also includes a distribution channel, usually referred to as placement.
Therefore, the length of a distribution channel depends on how many middlemen are needed to distribute a good or service.
To know more about the distribution channel, here
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