Answer:
1a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
Identification: U.S. Treasury Bills (T-bills)
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
Identification: Certificate of deposit
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
Identification: Money Market Mutual Fund
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Identification: Lease Agreement
2. The instruments which are traded in capital markets are Common Stock, Preferred Stock, Corporate Bonds and Certificates of deposits excluding Long-term bank loans.
3. The process in which derivatives are used to reduce risk exposure is called <u>hedging</u>.
Answer:
are making a large purchase.
Explanation:
A mortgage is a long term debt. It takes at least five years to repay a mortgage. In practice, mortgages are issues for between 10 and 30 years.
Mortgages are ideal for purchases requiring a colossal amount of money. For example, the purchase of homes, land, plants, and equipment. The repayment of the amount borrowed to facilitate such purchases is spread over many years. This enables the borrower to repay the loan in affordable monthly installments.
Answer:
A) Contacting the farming cooperative to negotiate the price of corn for your upcoming contract.
Explanation:
You need to cut upstream costs, which means costs related to the supply of materials, parts and components, and the processing of the final goods.
Upstream costs include the price of raw materials and in this case, the raw materials are bought from a farming cooperative. By negotiating a lower price for corn with them, you can actually reduce your upstream costs.
Answer:
The answer is <u>A.)</u>while a shortage is a temporary market condition, scarcity is an ongoing condition in the world.
Explanation:
It will not stop in the world no matter what it is a problem ethier way in the world.
