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wel
3 years ago
7

Discuss about Financial System and its impact on the strategic Financial Management ​

Business
1 answer:
klio [65]3 years ago
5 0

Answer:

The modern Financial System is based on a central bank that controls the monetary base (but not the money supply), and in fractional reserve banking. The implicaton of this, is that banks loan out some of the money that they obtain as deposits, and in this process they create money.

Explanation:

The Financial System is influenced by this process of money creation, because when the money that circulates in the economy (the money supply) changes, interest rates also change.

Interest rates are the price of investment, and the most important indicator that a financial manager has to take into account when making a financing decision.

Financial managers must also take into account the different types of financial institutions that exist, from hedge funds, to commercial banks, to cooperatives, and the different types of securities, from stocks, to bonds, to derivatives and futures.

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I think the answer is A
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3 years ago
7. What is supply and demand? Give me an example of a supply and demand currently?
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Answer:

Supplier sells the goods at various prices, depending on how much consumers want it, and at the rate that the goods are being sold.

For example, now, during the pandemic,  face masks are now in very very high demand. Due to this, suppliers has now increased the price of the face masks, as to take advantage of the current situation

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2 years ago
Franklin Aerospace has a quick ratio of 2.00x, $38,250 in cash, $21,250 in accounts receivable, some inventory, total current as
postnew [5]

Answer:

Over the past year, the company sold and replaced its inventory 31.37x

Explanation:

In order to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate first the inventory with the following formula:

Current assets=cash+inventory+account receivables

inventory=Current assets-cash-account receivables

inventory=$85,000-$38,250-$21,250

inventory=$25,500

So, to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate the Inventory turnover ratio as follows:

Inventory turnover ratio=sales/inventory

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Inventory turnover ratio=31.37x

Therefore, over the past year, the company sold and replaced its inventory 31.37x

6 0
3 years ago
A company paid $43,800 plus a broker's fee of $675 to acquire 7% bonds with a $46,000 maturity value. the company intends to hol
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When the bonds will mature, the company will receive, maturity value plus the interest earned on the bonds.

The maturity value will be the par value, as nothing is given, the bonds are redeemed at par value i.e. $ 46,000.

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Interest Income = 7 % * $ 46,000 = $ 3,220

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3 years ago
If a 10% decrease in the price of one product that you buy causes an 8% increase in quantity demanded of that product, will anot
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Answer:

No

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to determine if another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded, we have to determine the price elasticity of demand.

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demand in inelastic so a 10% reduction in price would lead to a less than 8% change in quantity demanded  

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3 years ago
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