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Sergeeva-Olga [200]
3 years ago
9

Why are short-term and long-term goals important when it comes to money? Give an example of each.

Business
1 answer:
Fantom [35]3 years ago
5 0

Answer:

Answer to the following question is as follows;

Explanation:

The precision of planned statistics that relate to future activities is a benefit of short-term planning. Long-term planning may be less trustworthy due to the inaccuracy of longer-term projections.

Long-Term Financial Objectives For most people, the most important long-term financial objective is to save enough money to live comfortably.

Virtually all organisations, from small startups to huge established firms, require short-term money management. Even huge corporations with seemingly strong financial accounts have declared bankruptcy because they were unable to pay their existing obligations.

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Explanation:

If interest rates suddenly rise by 2 percent, the percentage price change of bond J is -18.80% while the percentage price change of bond K is -15.46%

The calculation is provided below

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3 years ago
According to SEC independence regulations,
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3 years ago
If the Fed increases the discount rate, which of the following accurately describes the sequence of events that will follow in t
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Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

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3 years ago
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Frequently lacks effective communication channels across departments. Communication between departments can be an issue in this structure.

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