Asset transformation by financial intermediaries is the purchase of a primary asset or securities and their transformation into other assets in terms of risk and maturity.
A type of transformation where banks use deposits (mobilized funds) to generate income by pooling deposits to provide loans. More precisely, asset transformation is the process of converting bank liabilities (deposits) into bank assets (loans). Deposits are inherently subject to withdrawal by customers (depositors) at any time or as set out in the deposit contract/agreement. Loans are bank assets because they represent money that the bank lends and expects to receive back in the form of repayment of principal and interest. As such, banks perform asset transformation by providing long-term and short-term loans, with the interest differential being their transformation returns. Banks and other financial institutions usually perform asset transformation by offering their customers various financial products on both sides of the balance sheet, such as deposits, investment and loan products, etc.
Learn more about risk and maturity.
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Answer:
Letter E is correct. <u>Their reliance on available natural resources for their subsistence, rather than controlling the reproduction of plants and animals.</u>
Explanation:
The use of natural resources is common and essential to all foraging economies, whose fundamental principle is to produce for their own consumption. These are economies that depend on hunting, gathering or fishing to survive.
However, there is no systematization of economic processes nor the use of socio-structural variables and policies that help these subsistence economies to gain a new perspective on the control and functioning of the economy, which can help in the processes and optimization of the utilization of natural resources.
Given:
<span>bonds on the market with 19.5 years to maturity
</span><span>a yield to maturity of 6.6%,
current price of $1,043
face value of $1,000
YTM = Coupon payment / current price
6.6% = Coupon payment / 1,043
6.6% * 1,043 = Coupon payment
68.838 = coupon payment
Coupon rate = Coupon payment / Face Value
Coupon rate = 68.838 / 1,000
Coupon rate = 0.068838 or 6.88%
The coupon rate of DMA Corporation's bonds is 6.88%.
Regardless of its price in the market, each bond will have 68.838 annual interest payment or 34.419 semi annual payments.</span>
Answer:
Net Income = $45000
Explanation:
The basic accounting equation states that the value of assets is always equal to the sum of the values of liabilities and equity.
Total Assets = Total Liabilities + Total equity
At the beginning of the year:
295000 = 190000 + Total equity
Total Equity = 295000 - 190000
Total Equity = $105000
The net income earned during the year is appropriated in two ways. It is either retained in the business and transferred to retained earning or paid out as dividends or both. Transfer to retained earnings from net income increases equity.
At the end of the year:
355000 = 220000 + Total Equity
Total Equity = 355000 - 220000
Total Equity = $135000
Ending balance of equity = Opening balance of Equity + issuance of equity(Common stock) + Net Income - Dividends
135000 = 105000 + 35000 + Net Income - 50000
135000 = 90000 + Net Income
Net Income = 135000 - 90000
Net Income = $45000
Answer: Takeoff stage
Explanation: In Rostow's five-stage model of economic growth states various factors of the required economic condition necessary for that country to develop. One such stage is the takeoff stage. i.e.
Take-off stage states
(a)In this particular period Urbanization will increases.
(b)Industrialization proceeds as technological progress will take place.
(c) Secondary sector expands .
It should be also duly noted that during this stage,Textiles and apparel are usually the first "take-off" industry .
<u><em>Hence, a country where the manufacturing of both semi durable and non durable consumer goods has just begun. Also, the goods demanded relate to equipment and supplies to support manufacturing has reached the takeoff stage in Rostow's five stage model of economic growth.</em></u>
