Contrast the modern construct for FISIM with a measure that sub- tracts deposits from the financial sector’s lending to measure value added in the financial sector, i.e. what we called gross profits. How will these two measures differ in terms of size and sensitivity to risk? Can you give differing views of a world without finance for each to be the proper measure of value added? [Note these are two different statistics which are designed to measure the same number so if they differ at least one of is incorrect.]

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: Which risk ratios best answer each of the following financial questions? a. How quickly is a company…

A: Risk Ratio: This ratio indicates the health of the company. Here health means that the capital…

Q: 3. Financial Planning and Forecasting: Using Regression to Improve Forecasts Regression analysis is…

A: Variables in the question:Sales=$130 million = $130,000,000Increase in sales this…

Q: What is the difference between the ratios that use the market price and the other ratios? Why might…

A: Ratio analysis mistreatment money statements includes accounting, securities market, and management…

Q: A borrower who takes out a loan usually has better information about the potential returns and risks…

A: Effective risk management strategies and mechanisms, such as thorough due diligence and monitoring,…

Q: The pricing efficiency of financial markets can be expected to decrease if the cost of skillful…

A: Skilled financial manpower is very important in financial sector and valuation of assets in…

Q: Which of the following statements is false?   A.   Funding risk is the risk that a firm will not…

A: The concept of risk is linked to the uncertainty of future occurrences that may or may not occur.…

Q: en preparing a projected income statement, which of the following additional information, other than…

A: When preparing projected income statement there are many factors need to considered and overall…

Q: Value at Risk (VaR) is a statistical measure of maximum loss used by banks and other financial…

A: Value at Risk is a technique used by institutions to analyze the potential risk assessed in the…

Q: Which liquidity risk measurement strategy is best for a financial institution to take when is unable…

A: Current liabilities refer to the short-term debt obligation of a company which includes creditors,…

Q: f interest means higher levels of loans, and therefore, higher level of investment in real capital…

A: Introduction : In simple words, financial intermediaries refers to the individuals and the entities…

Q: What is market efficiency? How do we characterise efficiency in financial markets? Briefly explain…

A: Market efficiency refers to the degree to which market prices reflect all available, relevant…

Q: Multiple Choice What happened? What is happening? Why did it happen? What are the root causes of…

A: The net income is the income that is received by the sale of goods and services after deducting all…

Q: The concept of "crowds in" is the opposite of: a) Crowding out b) Supply-side economics c)…

A: The term 'crowds in' is used in economics to describe a situation where increased public sector…

Q: Ceteris paribus, current financial market returns will increase as

A: Capital goods are those fixed assets for the company which help in the production process. They are…

Q: How do you think financial ratios differ across different industries

A: Financial ratios are a way a whole company can be analysed based on its profitability , liquidity or…

Q: Define and explain the agency problem in terms of differences in ability to diversify risk by…

A: Agency problem occurs when there is a conflict of interest when manager is in dilemma to serve the…

Q: predict

A: Financial planning is always a challenging task for nay company & the things become even more…

Q: D4) Please explain why liquidity ratios, profitability ratios, and efficiency ratios are important…

A: Ratio are very important indicators of performance of sector and company and give good comparison of…

Q: Do you think investors should practice dollar cost averaging when investing their money? Why or why…

A: Dollar-Cost Averaging: Dollar-Cost averaging is an investment approach that involves investing an…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.