Question

In: Finance

a) what are financial markets. b) explain the following : i)treasury bills ii)debenture iii)certificate of deposit

a) what are financial markets.

b) explain the following :

i)treasury bills
ii)debenture
iii)certificate of deposit

Solutions

Expert Solution

A) Financial market is a market where people trade securities at a low transaction cost.Trading can be done in stocks, bonds, derivatives, forex and so on.

B)1) Treasury bills :- A treasury bill a short term security issued by US government and baced by treasury department with a maturity of less than one year. Treasury bills are usually sold in the denominations of $1,000. These securities are regarded as low risk and secure investment.

2) Debentures:- These are long term securities which are issued by companies and government, and are not backed by collateral. Debentures are only backed by the creditworthiness and reputation of the issuer. These securities also yield a fixed rate of interest.

3) Certificate of deposits:- A certificate of deposit is a product offered by banks for a fixed rate of premium in exchange of a lump sum of deposit which needs to be kept untouched for required period of time. It is issued by almost every financial institution but with different terms and rates, depending on the banks.


Related Solutions

a. What is the interrelationship among i. financial inclusion, ii. financial deepening iii. financial intermediation? b...
a. What is the interrelationship among i. financial inclusion, ii. financial deepening iii. financial intermediation? b .Why are these concepts so important?
a) What is the interrelationship among financial i) inclusion ii )financial deepening iii) financial intermediation? b)...
a) What is the interrelationship among financial i) inclusion ii )financial deepening iii) financial intermediation? b) Why are these concepts so important?
Explain the termination of Polymerase I, II, and III.
Explain the termination of Polymerase I, II, and III.
Explain the following i)Refraction ii) Wave mode iii)Bloch body
Explain the following i)Refraction ii) Wave mode iii)Bloch body
1. Explain, what are the risks and rewards to a a (i) Buyer (ii) Seller (iii)...
1. Explain, what are the risks and rewards to a a (i) Buyer (ii) Seller (iii) Lender and (iv) Real Estate Agent a Buyer buying a Note (Promissory Note). (4 points).. Please site sources and be detailed.
Explain the following briefly: i) Potential ordinary share ii) Ordinary share iii) Financial instrument iv) Equity...
Explain the following briefly: i) Potential ordinary share ii) Ordinary share iii) Financial instrument iv) Equity instrument v) Options, warrant and their equivalents State the double entry for the following: i) Pre-acquisition dividend ii) Post-acquisition dividend iii) Impairment in associate iv) Provision for unrealized profit v) Depreciation of plant
Explain the use of the following accounting records i. Prudence ii. Relevance iii. Reliability
Explain the use of the following accounting records i. Prudence ii. Relevance iii. Reliability
8. Use the following table to answer questions I, ii, iii and iv A B C...
8. Use the following table to answer questions I, ii, iii and iv A B C Initial cost $15,000 $9,000 $12,000 Annual benefit $8,000 $2,000 $1,800 Salvage value $5,000 $9,000 0 Life in years 2 years 3 Years Infinity MARR 10% i. The NPW of alt. A is __________________. A) $13,420 B) $17,380 C) $11,000 D) $6,00 ii. The NPW of alt. B is __________________. A) $13,420 B) $17,380 C) $11,000 D) $6,000 iii. The NPW of alt. C is...
Which of the following is the most liquid asset? A. certificate of deposit B. checking account...
Which of the following is the most liquid asset? A. certificate of deposit B. checking account C. stocks D. bonds 1 points    QUESTION 13 When oligopolistic firms in an industry come together to form a cartel, then it is most likely that A. industry output will decrease while prices will increase. B. industry output will increase while prices will decrease. C. both industry output and prices will decrease. D. both industry output and prices will increase.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT