All categories

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.

Learn more about this here

brainly.com/question/14934453

You might be interested in

Esquire Comic Book Company had income before tax of $1,550,000 in 2021 before considering the following material items: 1. Esqui

olga2289 [7]

Answer:

Esquire Comic Book Company

Income Statement

For the Year Ended December 31, 2021

Operating income $1,550,000

Restructuring costs ($60,000)

Income from continuing operations b/ Taxes $1,490,000

Income tax expense ($372,500)

Income from continuing operations $1,117,500

Discontinued operations:

Operating income $610,000
Loss on disposal ($395,000)
Income tax on discontinued operations ($53,750)

Income from discontinued operations $161,250

Net income $1,278,750

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

3 0

3 years ago

if the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the st

Len [333]

Expected return of the stock is greater than 12%.

Using formula, Risk free rate + beta (market risk rate - risk free rate)\

= 2% + 2.0 (7%-2%)

= 13.6 - 0.4* risk premium

Risk premium of a stock is greater than 12%.

A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.

Note that the full question is:

If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?

A. less than 12%.

B. 12%.

C. greater than 12%.

D. cannot be determined.

To learn more about returns: brainly.com/question/24301559

#SPJ4

3 0

1 year ago

Customers can purchase HP computers from retail stores like Best Buy and Office Depot, online directly from HP, and through vari

masya89 [10]

Answer:

Multiple

Explanation:

For instance,Customers can purchase HP computers from retail stores like Best Buy and Office Depot, online directly from HP, and through various catalogs. In this case, HP is using a(n) multiple distribution arrangement.

Distribution channel can be regarded as chain of businesses or intermediaries whereby good or service is been passed until it reaches the final buyer. Distribution channels could be wholesalersor retailers or distributors. Multi-channel distribution can be regarded as a channel whereby

business uses one or more than one type of distribution channel. For instance, a street retailer could

also distribute directly to customer with the use of e-commerce, even with the use of catalogues which could be sent via direct mail.

5 0

3 years ago

Which of the following is a condition that triggers the penalty for negligence or intentional disregard? 1) the taxpayer underst

Vsevolod [243]

Answer:

2) the taxpayer shows negligence or disregard of the rules or regulations, causing an underpayment.

Explanation:

When any taxpayer shows some negligence or if they disregard the rules and the regulations, causing an underpayment, then it leads to a penalty for the disregard or the negligence.

Also, when a taxpayer intentionally understates his or her tax by a larger of $5000 or a 10% of his / her correct tax, then it is an accuracy related penalty.

And, also the information related penalties which are levied for failure of taxpayer to pay the amount of tax owed by due date and also failure to filing the return by the due date.

Thus option (2) is correct.

5 0

3 years ago

Calculate the value of a bond that matures in 16 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 13

spayn [35]

Answer:

$1,069.74

Explanation:

We use the present value formula which is shown in the attachment below:

Data provided in the question

Future value = $1,000

Rate of interest = 12%

NPER = 16 years

PMT = $1,000 × 13% = $130

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the value of the bond is $1,069.74

7 0

3 years ago