Investment Notes -T-Bills: Treasury bills (or T-bills) mature in one year or less. Like zero-coupon bonds, they do not pay interest prior to maturity; instead they are sold at a discount of the par value to create a positive yield to maturity. -Federal Funds: overnight borrowings between banks and other entities to maintain their bank reserves at the Federal Reserve. Banks keep reserves at Federal Reserve Banks to meet their reserve requirements and to clear financial transactions. -Eurodollars:
Words: 2050 - Pages: 9
considerable amount of debt also which is tabulated below Current outstanding debts of Butler Lumber Company Particulars Year 1991 Notes Payable, bank 247000 Notes Payable, trade 157000 Accounts payable 157000 Accrued expenses 36000 Total Debt 597000 All amounts in $ As his financial advisor I would suggest Mr. Butler to go for this loan amount. This would help in meeting the expansion and sustaining the growth of his company. Even though the operating expense for 1990 is
Words: 369 - Pages: 2
drilling equipment that will be used by contractors to excavate and construct underwater tunnels. The customer of the manufacturing company, your client, has requested that its bank provide the financing. The bank will be provided a guaranteed return and principal on this loan. The bank only can make variable rate loans and the manufacturing company is only willing to borrow on a fixed
Words: 512 - Pages: 3
institutions, usually for a period of one day.Used by banks to meet short-term needs to meet reserve requirements3.These work similar to the market for fed funds, but nonbanks can participate.A firm sells Treasury securities, but agrees to buy them back at a certain date (usually 3–14 days later) for a certain price..4.A bank-issued security that documents a deposit and specifies the interest rate and the maturity date……….5.Unsecured promissory notes, issued by corporations, that mature in no more than
Words: 416 - Pages: 2
Professor Crocker H. Liu | Financial Management, Spring 2000 Tire City Case Frequently Asked Questions | | Note: What I'm trying to make you do is THINK! To read things carefully. To make judgements for yourself without your parents/teachers telling you what to do. This is an INDIVIDUAL project and therefore, anyone who cheats will be given an F in the course. Marine Corp. slogan: The weak quit when they experience pain, the strong quit only when the mission is accomplished. Hawaiian:
Words: 3725 - Pages: 15
Reserve Bank of India RESERVE BANK OF INDIA www.rbi.org.in ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤Îˆ RBI Central Office Building, Mumbai RESERVE BANK OF INDIA www.rbi.org.in ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤Îˆ 2 Contents Overview: Who We Are � Celebrating Our Platinum Jubilee � The Reserve Bank: Tradition and Change � Celebrating 75 years: Highlights Organisation and Structure: How We Operate � Management and Structure Main Activities: What We Do � Monetary Authority � Issuer of Currency � Banker and
Words: 6885 - Pages: 28
streams has the higher present value if the discount rate is 9 percent? If the discount rate is 21 percent? 4. Calculating EAR First National Bank charges 15.1 percent compounded monthly on its business loans. First United Bank charges 15.5 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan? 5. Calculating Annuities You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock
Words: 389 - Pages: 2
BUSINESS STUDIES (CODE - 054) CLASS–XI (2013-14) One Paper Units Periods 100 Marks 3 Hours Marks Part A: Foundations of Business 1. 2. 3. 4. 5. 6. Nature and Purpose of Business Forms of Business Organisations Public, Private and Global Enterprises Business Services Emerging Modes of Business Social Responsibility of Business and Business Ethics } } } } } 22 26 22 22 12 16 120 20 18 12 50 Part B: Finance and Trade 7. 8. 9. 10. 11. Sources of Business Finance Small Business Internal Trade International
Words: 1604 - Pages: 7
They repackage funds received and deposits to provide loans of the sie and maturity desired by deficit units 3. They accept the risk on loans provided 4. They have more expertise than individual surplus units in evaluating the creditworthiness of deficit units 5. They diversify their loans among numerous deficit units and therefore can absorb defaulted loans better than individual surplus units could (Commercial Banks, Savings Institutions, Credit Unions) (Finance
Words: 1016 - Pages: 5
Insures the deposits of the bank against bank defaults and thereby has lead to banks making risky loans. b) Insures the deposits of the bank against banks going bankrupt and thereby has led to banks making safe loans. c) Insures the deposits of the bank against default and thereby has lead to banks ignoring credit risk in their loan portfolio. d) Insures the assets of the bank against default by the borrower and thereby has lead to banks ignoring credit risk in their loan portfolio. As the manager
Words: 896 - Pages: 4
