Finance

Financial Instruments A financial asset is something which is defined as an entitlement of future cash flows. However, a financial instrument is a broader term used to describe financial assets and other assets in which there are no organised secondary markets to trade them. However, a financial security is something that can be traded in a secondary market. Attributes of Financial Assets Financial assets are those that: • • • • Have a return of yield expressed in terms of percentage. Have risk in which there is probability the actual return will differ from the expected return. Are liquid in that they can be sold at current market prices with reasonable transaction costs. Are expected to have a set time-pattern of cash flows in or out.

Regulations of financial institutions have always followed financial crisis and failures. Market failures and crisis are the primary triggers of that lead to the development of regulations of financial markets and institutions (Howells and Bain, 2004).

c. Smaller payments mean more time in debt. d. Your lower interest loans also get rolled into the deal so you end up with minimal savings.

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

The decision making of management is very crucial and involves various analysis to be performed. There are various ratios and methods that can be useful for mitigating the risks and increasing the expected returns with investments. The financial forecast is a mix of the behaviour,

Decrease an asset and increase another asset. Credits decrease an asset and increase another asset.

Claessens, S. (2009). Competition in the Financial Sector: Overview of Competition Policies. Retrieved on 8/22/2013,

Define the scope of financial management. What role should the financial manager play in a

4. Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.

NPV: If NPV>0, accept the project [which are expected to add value to the firm], otherwise don’t bother.

Finance assets or the financial worth the assets, such as cash. The factory, machine, and tools owned by a firm and used for process and production.

Many people assume that handling personal finances is straightforward and can be done with little to no preparation. This paper delves into the many different aspects of personal finance. It discusses the tools that we are learning in class and explains how these tools that can be used to save for retirement. It offers tips to improve your financial standing both now and in the future. And finally, it compares these tips with advice offered by an expert, Suze Orman. Everyone needs to learn how to properly prepare their finances to reach their goals. While doing so can be easy and rewarding, neglecting

Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts.

1. Has the inflation rate in Canada increased or decreased in the past few years? What about interest rates?

1.       A financial analyst is responsible for maintaining and controlling the firm’s daily cash balances. Frequently manages the firm’s short‑term investments and coordinates short‑term borrowing and banking relationships. FALSE