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2 years ago

What is the primary role of individuals as participants in the money market?

Business

2 answers:

Sindrei [870]2 years ago

7 0

Answer: Individuals purchase money market instruments via money market mutual funds

Explanation:

larisa [96]2 years ago

4 0

The primary role of individuals as participants in the money market is to purchase money market instruments so that their funds can be used for further investment by financial institution.

The Money markets constitutes financial institution who provides the money market instrument such as mutual funds to the Market participant.

The Money market are essential to the economy because the excess reserves of investment with them are lend out and this boost the money supply of the economy.

Therefore, the primary role of individuals as participants in the money market is to purchase money market instruments so that their funds can be used for further investment by financial institution.

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Dimitri owns stock in a u.s. publicly traded company. as a stockholder, dimitri is a(n) ______ of the corporation.

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Based on the fact that Dimitri owns stock in a company in the United States which is publicly traded, he is a stockholder which makes him an owner of the corporation.

<h3>What is Dimitri to the company?</h3>

Dimitri is considered to be an owner of the company because owning a share in a company means that you have ownership rights to their stock.

This is called equity ownership and it is the type of ownership that is seen with publicly traded companies such as the one that Dimitri bought shares in.

Because he is a shareholder and therefore an owner, Dimitri has the right to attend annual general meetings and voice his opinion. He also stands to make a capital gain if the share price of the corporation rises.

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Read 2 more answers

A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I

Valentin [98]

Answer:

A. $21,200,000

B. $20,800,000

Explanation:

A. Calculation to determine The instant before it pays out current profits as dividends

Value of the firm =[(Current profits) × (1 +Opportunity cost of funds)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.06)]÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.06)]÷0.02

Value of the firm= $424,000 ÷ 0.02

Value of the firm= $21,200,000

Therefore The instant before it pays out current profits as dividends will be $21,200,000

B. Calculation to determine The instant after it pays out current profits as dividends

Using this formula

Value of the firm =[(Current profits) × (1 +Constant growth annual rate)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.04)] ÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.04)] ÷ (0.06 - 0.04)

Value of the firm= $416,000 ÷ 0.02

Value of the firm= $20,800,000

Therefore The instant after it pays out current profits as dividends will be $20,800,000

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The following information is provided for Sacks Company before closing entries. Cash $ 12,000 Supplies 4,500 Prepaid rent 2,000

RideAnS [48]

Answer:

b. $78,500

Explanation:

Assets

Equipment $65,000

Cash $12,000

Supplies $4,500

Prepaid rent $2,000

Total Assets $83,500

Equity and Liabilities

Common stock $68,000

Retained earnings $10,500

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Accounts payable $5,000

Total Equity and Liability $83,500

*Working

Net Profit = Service revenue - Salaries Expenses - Miscellaneous expenses

Net Profit = $30,000 - $4,500 - $20,000 = $5,500

Total retained Earning = $8,000 + $5,500 - $3,000 = $10,500

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