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3 years ago

In two to three sentences, describe one saving and investing principle and how you can apply it to your own personal finances.

Business

2 answers:

Zigmanuir [339]3 years ago

4 0

Answer:

Personal finance is a term that covers managing your money as well as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning. The term often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities

slega [8]3 years ago

3 0

Answer:

Explanation:

Personal finance is about meeting personal financial goals, whether it’s having enough for short-term financial needs, planning for retirement, or saving for your child's college education. It all depends on your income, expenses, living requirements, and individual goals and desires—and coming up with a plan to fulfill those needs within your financial constraints. To make the most of your income and savings, it's important to become financially literate, so you can distinguish between good and bad advice and make smart decisions.

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If the fed expands the money supply by $1 trillion, what will happen in the money market?

natta225 [31]

<span>If the Fed expands the money supply by $1 trillion, the money market will be (letter C.) the equilibrium interest rate will fall, and more money will exchanged in equilibrium. It is because people will have more money to spend. Some would choose to use this money to buy goods and services while other opt to put their money in banks which may lead to lower interest rates to persuade people in borrowing. </span>

4 0

2 years ago

the spread between the interest rates on bonds with default risk and default-free bonds is called the:

jeka57 [31]

The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.

A default-free bond is a bond in which the bond issuer would not miss scheduled payments of either the coupon or principal. Bonds issued by the government are generally considered to be default-free. This is because the government can print money to make payments.

A bond with a default risk is a bond in which the bond issuer can miss scheduled payments of either the coupon or the principal. Bonds issued by private individuals are generally considered to be bonds with default risk.

Bondholders usually demand a compensation for holding bonds with a default risk. This compensation is known as risk premium.

Risk premium = return on bonds with default risk - return on default- free bond.

To learn more, please check: brainly.com/question/4304080?referrer=searchResults

5 0

2 years ago

[The following information applies to the questions displayed below.]

Vinil7 [7]

Answer:

3.2 Million

Explanation:

7 0

2 years ago

The bookbinder company has made $150,000 before taxes during each of the last 15 years, and it expects to make $150,000 a year b

allochka39001 [22]

A company can carryback losses up to 3 years. This means that the company can use its 525,000 2015 loss to obtain a credit for income taxes paid in the previous 3 years, 2012-2014. The calculation is as follows:

2012 Carryback: 150,000 x .35 = 52,500

2013 Carryback: 150,000 x .35= 52,500

2014 Carryback: 150,000 x .35 = 52,500

The check that Book Binder receives will be 52,500 x 3 = 157,500.

Its tax liability in 2015 will be zero, and its loss eligible for carryforward will be 525,000-450,000=75,000, since it has already carried back $450,000 of its loss (2012-2014 income).

Its liabilities in future years will be:

2016: (150,000-75,000) x .35 = 26,250. We have now exhausted all tax credits possible from the 2015 loss.

2017-20: 150,000 x .35 = 52,500

4 0

3 years ago

Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.2 percent. The bond sells for $

marin [14]

Answer:

The correct answer is 5.72%.

Explanation:

According to the scenario, the given data are as follows:

Coupon rate = 5.2%

Coupon rate (semiannual) = 2.6%

par value (FV)= $1,000

Coupon payment(pmt) = $1,000 × 2.6% = $26

Time period = 16 years

Time period ( semi annual) (Nper)= 32

Sell value ( PV) = $945.32

So, we can calculate the rate by using financial calculator.

Attachment is attached below

So, YTM Semiannual= 0.02863 or 2.86%

And YTM annual = 2.86% × 2 = 5.72%

6 0

3 years ago