Assignment 1 Q1.) (5 points) $50 today is worth MORE than $50 tomorrow.(Tell True or False) Q2.) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest. (Tell True or False) Q3.) Shawn wants to buy a new telescope. He estimates that it will take him one year to save the money and that the telescope will cost $200. At an interest rate of 6%‚ how much does Shawn need to set aside today to purchase the telescope in one year? Q4.)Johnny and
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What is Finance? Finance is allocation of assets and liabilities over period under various circumstances. The utmost important point in finance is time valuation in terms of money‚ like the value of currency today has more value when equated to same unit of currency tomorrow. Finances main objective is valuate assets in according to their level of risks and projected rate of return. It directly or indirectly refers to the involvement of money. The term finance formulates numerous and incalculable
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Introduction The source of finance that is the issue of from where to get funds to start‚ develop or expand a business is very important for the future of the business. Success of business and its operations depends largely on choosing the proper sources of finance and the purposes for which the fund is sought. For this reason study of different available sources‚ their advantages‚ limitations in respect of cost‚ period of time‚ rate of return‚ usability of funds and outcome of the funding repayment
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Behavioural Finance: How Investor Reacts in Decision Involving Risk? ABSTRACT Behavioral finance is a new field in economics that has recently become a subject of significant interest to investors. This article provides a general discussion of behavioral Finance .In this article survey is made between two different groups of investors. This article shows how we behave or the psychology when we make decisions involving risk‚ or in the possibility of loss .This article also throw some light on
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Financial Plan- Part II Personal Finance Economics plays a role in personal finance. -Describe the role that economics plays in your personal financial plan. Also‚ the use of credit plays a role in a personal financial plan. Describe the advantages and disadvantages of credit and explain how you will use it as part of your financial plan. Specifically address the following required elements: - Explain the role the government plays in personal finance (focus on regulations‚ laws
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Question: IDENTIFY THE SOURCES OF FINANCE AVAILABLE TO A BUSINESS Answer: There are a number of ways of raising finance for a business. The type of finance chosen depends on the nature of the business. Large organisations are able to use a wider variety of finance sources than are smaller ones. Finance is not just needed when starting a new business‚ but you may be required to seek further finance even if you’re business is well established i-e further expansion‚ R&D‚ new product launch
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“Banking‚ Finance‚ and Money: a Socio-economics Approach” L. Randall Wray‚ Professor of Economics and Director of Research at Center for Full Employment and Price Stability‚ University of Missouri—Kansas City; and Senior Scholar‚ Levy Economics Institute at Bard College. This paper will briefly summarize the orthodox approach to banking‚ finance‚ and money and then will point the way toward an alternative based on socio-economics. It will be argued that the alternative approach not only fits
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Behavioural Finance Petere Dybdahl Hede Behavioural finance is an add-on paradigm of finance‚ which seeks to supplement the standard theories of finance by introducing behavioural aspects to the decision-making process. Behavioural finance deals with individuals and ways of gathering and using information. Martin Sewell Behavioural finance is the study of the influence of psychology on the behavioural of financial practitioners and subsequent effect on markets. Anastasios Konstantinidis
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PRINCIPLES OF BANKING AND FINANCE MT.KENYA UNIVERSITY INSTRUCTIONS Answer at least TWO questions from section A and TWO others from section B SECTION A 1. a. Compare and contrast the main features of the financial systems of US and Germany. 15 marks b. Discuss the reasons for the internet bubbles of the late 1990s
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INTERNATIONAL FINNACE: International Finance is an area of financial economics that deals with monetary interactions between two or more countries‚ concerning itself with topics such as currency exchange rates‚ international monetary systems‚ foreign direct investment‚ and issues of international financial management including political risk and foreign exchange risk inherent in managing multinational corporations. OR International finance is the branch of economics that studies the dynamics of
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