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3 years ago

When savers deposit funds into banks, which then loan these funds to borrowers, it is called ________ finance.

Business

1 answer:

Vilka [71]3 years ago

3 0

Answer:

Indirect finance

Explanation:

Indirect financing is when lenders use indirect methods to raise capital from the capital market, such as via a financial institution. This is distinct from direct borrowing in which the issuer selling assets exclusively on the marketplace has a direct relationship to the financial markets.

In the situation of indirect funding, in the way of lower tax rates, the government gives advantage as a means to defend a specific interest instead of raising and reallocating tax income (that would be viewed by a government as a clear funding technique).

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The first step any investor should take before beginning to invest is to __________.

Nataly_w [17]

The first step that an investor should take before beginning to invest should be to establish investment objectives.

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3 years ago

What an employee is taking action to kill microorganism on cleaned surface this referred to A:cleaning b:sanitizing c: clean as

Afina-wow [57]

Answer:d

Explanation:

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3 years ago

At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock outstanding and retained earnings of $7,1

Mrrafil [7]

Answer:

Statement of stockholders' equity

at the end of the year (December 31)

Common Stock Retained Earning Total

Opening Balance $12,000 $7,100 $19,100

Income for the year $7400 $7400

Dividend Paid ($2,100) ($2,100)

Common stock issuance $6,900 $6900

End of the year Balance $18,900 $12,400 $31300

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3 years ago

A $ 1 comma 000 bond with a coupon rate of 6.2% paid semiannually has two years to maturity and a yield to maturity of 6%. If

pav-90 [236]

Answer:

As a result of a fall in interest and YTM, the bond price will increase by $15.04

Explanation:

To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31

Total periods (n)= 2 * 2 = 4

r or YTM = 6% * 1/2 = 3% or 0.03

The formula to calculate the price of the bonds today is attached.

Before Interest rates Fell

Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03] + 1000 / (1+0.03)^4

Bond Price = $1003.717098 rounded off to $1003.72

After Interest Rates Fell

New YTM = 6% - 0.8% = 5.2% or 0.052

Semi Annual YTM = 0.052 * 0.5 = 0.026

Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026] + 1000 / (1+0.026)^4

Bond Price = $1018.764647 rounded off to $1018.76

Change in Bond Price = 1018.76 - 1003.72 = $15.04

As a result of a fall in interest and YTM, the bond price increased by $15.04

7 0

3 years ago

What is a mortgage?

ddd [48]

A mortgage is a type of loan used to buy property, the bank gives you the money at an interest rate, but takes possession of your properties until you pay back the loan. The answer would be B!

Have a nice day! :)

3 0

3 years ago