Financial market Essay examples

Submitted By nab92
Words: 409
Pages: 2
Open Document
Financial Market Homework 2
For 10/07/2014
Azizi Nabil , Ferrary Alexandra , Seneclauze Pierre , Gigou Renaud

Review Question 1 and 4 ;

1. Define intermediation.

.

4. What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal?

Problem 3.4 ;

Chapitre 4 ;

Review Question 11;

11. Indicate in which section the following balance items belong (current assets, fixed assets, current liabilities, long-term liabilities, or equity).

a. Cash ; belong to Current Asset
b. Notes Payable ; belong to Current Liabilities
c. Common Stock ; belong to Equity
d. Accounts Receivable; belong to Current Asset
e. Accrued Expenses ; belong to Current Liabilities
f. Preferred Stock ; belong to Equity
g. Plant and Equipment ; belong to Fixed Asset
h.Capital in Excess ; belong to Equity
i.Marketable Securities ; belong to Current Asset
j.Accounts Payable ; belong to Current Liabilities
k.Prepaid expenses ; belong to Current Asset
l.Inventory ; belong to Current Asset
m.Retained Earnings ; belong to Equity

Problem 4.9- 4.10 ;

4-9

a To calculate the current asset we have to add all the items on the current asset

So Current Asset = Cash + Marketable Securities + Inventory + Accounts Receivable + Prepaid expenses.

(11,000,000 + 9,000,000 + 11,000,000 + 3,000,000 + 1,000,000) = 35,000,000

Current Assets = $35,000,000

b To calculate the net fixed asset we have to add all the items which are in the fixed asset and we have to substract the depreciation . So here we have already the fixed asset so ;

Net Fixed assets= Fixed assets – depreciation

30,000,000 – 8,000,000 = 22,000,000
Net Fixed Assets = $22,000,000

c To find the Current liabilities we have to add Notes payable + Accrued Expenses

CL=Notes Payable + Accrued Expenses

4,000,000 + 2,000,000 = 6,000,000

Current Liabilities = $6,000,000

d To
Show More

Related Documents: Financial market Essay examples

Types Of Financial Markets

Financial Markets- create products that provider return for those who have excess funds and making funds available to those who need money. Intermediaries are firms who do that stuff. Also factor markets for capital (savings can be used for future consumption, invest in capital, increase in productive capacity) Sources of savings 1. Saved household income 2. Not distributing part of profit to owners 3. Gov budgets for surplus 4. O/S borrowing and access to foreign savings Reasons for Borrowing…

Words 1120 - Pages 5

Market: Financial Markets and Efficient Markets Hypothesis Essay

1.0 Introduction Financial market is that people and entities can trade financial securities, commodities, and other fungible items, which has a central place in the theories and models of finance. According the topic, uncertainty and risks must be distinguished in financial mark, which concepts that talk about expectations in future. In general, all activities in business carry some risk, but some are inherently more risky than others. However, uncertainty is a word that connotes actions or events…

Words 1300 - Pages 6

Notes: Financial Markets And Financial Intermediaries

U.S. Financial System 1. The Wonderful World of Credit. In 2012, briefly what was the primary reason for the increase in car sales? Next, how specifically did the tightening of lending requirements during the financial crisis hurt small businesses? Households were now able to get loans again. If you don’t have the capital to start a business normally you use bank loans, and that was not a possibility during the financial crisis. An Overview of the Financial System 2. Financial Markets and Financial…

Words 542 - Pages 3

Introduction To Financial Markets

Topic 1 – Introduction to financial markets Money is a medium of exchange, it can be anything. As long as it is agreed. Banks don’t actually hold all our money, we treat our balances as money, even though it is not physical. Money holds value. A financial system brings together the users of funds with the providers of money, or financial instruments. Financial instruments are an entitlement to a future cash flow. Nothing will ever happen unless money actually moves. In America the economy is…

Words 6423 - Pages 26

Essay on Financial Markets

FIN7633 Chapter 1 : Markowitz, Mean-Variance Portfolio Theory There is a risk that we measure financial risks wrong. Expected return Portfolio E(Rp) : Arithmetic E(Rp) = Σ(Probability * return) = 1/N * Σ(return) Geometric E(Rp) : Terminal value = (1+R1)*(1+R2)*.....*(1+RN) gE(Rp) = Terminal value ^(1/N) – 1 or gE(Rp) = Arithmetic E(Rp) – ½ * Variance of the distribution Remark : the difference arises from the asymetric effect of positive and negative rates of returns…

Words 2561 - Pages 11

Essay Financial Markets

filer” in Rule 12b-2 of the Exchange Act. Large accelerated filer 9 Accelerated filer Non accelerated filer Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES NO 9 The aggregate market value of common stock held by non-affiliates (based on the closing price on the last business day of the registrant’s most recently completed second fiscal quarter as reported on the New York Stock ExchangeComposite Transactions) was $64.3 billion…

Words 2081 - Pages 9

Explain Behavior In Financial Markets

Since the late 1980's, economists have been worrying that efficient market theories don't explain behaviour in financial markets. Numerous studies provide evidence that individuals can be expected to demonstrate behavioural biases. There are two types of investors in the market; they are the sophisticated investors (i.e. equity fund managers), and individual investors. Some journals refer to sophisticated investors as “arbitrageurs” and “rational speculators” versus all other investors, or “noise…

Words 1919 - Pages 8

Financial Markets and Institutions Essay

Financial Markets and Institutions Dr. Marcus Crawford FIN 350 – Finance Markets and Institutions Financial Markets and Institutions Financial Market Role Financial market is a market in which people and entities can trade financial securities. There are general markets and specialized markets. There are several types of financial markets capital, commodity, money, derivatives, futures, and insurance and foreign exchange markets. These types of financial markets play an intricate part…

Words 1640 - Pages 7

Essay on Homework: Financial Markets

Chapter 1 1. Financial Decisions. Give several examples of (a) investment decisions and (b) financing decisions Purchase a new computer Conduct research for a new drug Shut down a factory b. Take out a bank loan or sell bonds, issue shares of stock to raise funds, buy or lease new machinery. Corporations. What are the key differences between a corporations and a sole proprietorship? What is the difference between a public and private corporation? 2. A sole proprietorship is a business that has…

Words 946 - Pages 4

Essay about Financial Markets

FINANICAL MARKETS Financial Markets Brenda Brown LaShunda Lewis FIN 100 June 9, 2013 Abstract Financial markets play an important role in contributing to the health and efficiency of an economy. The combination of well-developed financial markets and institutions, as well as a diverse array of financial products and instruments, suits the needs of borrowers and lenders and therefore the overall economy. Running head: FINANICAL MARKETS Financial markets are - any…

Words 771 - Pages 4