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4 years ago

A currency drain occurs when

Business

1 answer:

gogolik [260]4 years ago

5 0

Answer:

The correct answer is: non-bank public increases its holdings of currency outside the banking system.

Explanation:

A currency drain refers to the situation where there is an increase in currency held outside the banking system. When the public holds more money outside the banking system, it reduces the total reserves of the banks. The excess reserves get reduced as well.

The currency gets drained from the banking system, so banks can create less money. This causes a reduction in the money supply.

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Lincoln Park Co. has a bond outstanding with a coupon rate of 5.75 percent and semiannual payments. The yield to maturity is 4.7

ankoles [38]

Answer: the market price is $2,484.1434

Explanation:

Market price =

C × 1 - (1+r)*-n /r + F/ (1+r)*n

C = coupon rate = 5.75% of 2000

= 5.75/100 × 2000

= $115

F= face value = $2,000

r = yield to maturity = 4.7% = 0.047

n = number of years to maturity =22

Price = 115 × 1-(1+0.047)*-22 / 0.047 + 2000/(1+0.047)*22

Price = 115 × 1-(1.047)*-22 / 0.047 + 2000/(1.047)*22

Price= 115 × 1 - 0.364060032/0.047 + 2000/2.74679974

Price =( 115 × 0.635939968/0.047 ) + 928.120063

=( 115 × 13.5306376) + 928.120063

= 1556.02332 + 928.120063

Market price = $2,484.1434

Note: ( * ) means "raised to power"

4 0

3 years ago

At the end of 2020, Ivanhoe Co. has accounts receivable of $740,700 and an allowance for doubtful accounts of $71,600. On Januar

Mila [183]

Answer:

Altogether, there is $824,900 recieved!

Explanation:

Please mark brainliest! Have a nice day!

6 0

4 years ago

Why is working capital management one of the most important and time-consuming activities of the financial manager? What is net-

dybincka [34]

Answer:

Working capital is essential to a company's fundamental health and operational success. It helps in maintaining a solid balance between growth, profitability and liquidity.

Net working capital is the difference between a business/ company's current assets and current liabilities or debts.

Current assets are cash, accounts receivable and inventories of raw materials and finished goods

Current liabilities are accounts payable.

Explanation:

Working capital helps to maintain smooth operations and help improve a company's earnings and profitability and it includes:

1. Inventory management

2. Management of accounts receivable and account payable.

7 0

3 years ago

When might term insurance be a better option than whole life insurance?

Vedmedyk [2.9K]

Maybe never because Term insurance isn't always there when you need it. Also you can only get term at certain points in your life. Whereas whole life is always available.

6 0

4 years ago

Read 2 more answers

Red, Jess, and Frankare coworkers at Crossroad Inc. Having worked at CI for five years now, the three are discussing their caree

joja [24]

Answer:

The correct answer is Normative Commitment.

Explanation:

Normative commitment is defined as a psychological vision of the members of an organization and their attachment to the workplace. Employee engagement is essential to determine if workers will remain for a longer period of time and will do so with the passion necessary to achieve the established objectives.

Knowing the normative commitment helps predict job satisfaction, workforce commitment, leadership distribution, performance, job insecurity, etc. It is important that this be observed from the point of view of management in order to know their dedication to the tasks assigned daily.

8 0

3 years ago