100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten
logo-home
Eerder door jou gezocht
Eerder door jou gezocht
logo
Assignment 1 MBF chapter 1 - 7 €2,99
In winkelwagen
Snel navigeren naar
Voorbeeld
  2.  
  3. Radboud Universiteit Nijmegen (RU)
  4.  
  5. Methods and integration: money, banking, and financial markets

Antwoorden

Assignment 1 MBF chapter 1 - 7
 0 keer verkocht
  • Vak
  • Methods and integration: money, banking, and financial markets
  • Instelling
  • Radboud Universiteit Nijmegen (RU)
  • Boek
  • The Economics of Money, Banking and Financial Markets

Answers study book The Economics of Money, Banking and Financial Markets of Kent Matthews, Massimo Giuliodori - ISBN: 9780273731801, Edition: Druk 1, Year of publication: - (Assignment 1)

Voorbeeld 2 van de 6  pagina's

Document informatie

  • 14 juni 2018
  • 6
  • 2017/2018
  • Antwoorden
  • Onbekend

Onderwerpen

  • money banking and fina
  • methods and integrationmoney banking and financial markets
  • methods and integrationmoney banking and financial markets assignment
  • assignment
  • money banking and financial markets

Gekoppeld boek

book image

Titel boek:

Auteur(s):

  • Uitgave:
  • ISBN:
  • Druk:

Meer samenvattingen voor studieboek

  • Samenvatting Bank Management (HW Ugent), (Martien Lammers, 2024) - 15/20!!!
  • Financial market and institutions exam summary
  • Samenvatting / Summary FIMT The Economics of Money, Banking & Financial Markets (European edition)
Alles voor dit studieboek (10)

Geschreven voor

  • Radboud Universiteit Nijmegen (RU)
  • Economie
  • Methods and integration: money, banking, and financial markets
Alle documenten voor dit vak (5)

Verkoper

avatar-seller
fitorezyh

Ontvangen beoordelingen

Voorbeeld van de inhoud

1. If you want to invest in a company, you can choose between buying bonds or stock of that
company. What are the main differences between the two alternatives for an investor? Explain.

The main differences are that a bond is more secure than a stock. The bond assures you a certain yield
and the stock does not assure you a certain amount of dividend. A bond also assures you to get your
money back.

Answer sheet:
 With stock you invest in the capital of the firm.
 Your potential income is dividend which on the results of the firm.
 The value of your investment is based on the expected future dividends → expected future
results
 Potential average returns of investment likely to predict/ more volatile and more risky

 With bonds the firm has a debt to you. For this reason you have less risk of losing your
investment, and you have more certainty concerning your returns.
 This expected return is likely to be lower as compared to stock.

2. In the Netherlands, DUO is the organization that provides study loans to students. It is part of the
ministry of finance. Why would the interest rates be significantly higher if this was provided by
commercial banks instead of DUO?

Commercial banks have a different interest from DUO. DUO does not want to make any kind of profit
from students while commercial banks would not care. Commercial banks just want a high interest
rate, they cannot handle the big risk of students not paying the loan back. There is a big chance that
students will quit their study and won’t be able to pay the loan back.

Answer sheet:
 Duo is guaranteed by the government → lower risk premium
 Duo is financed using government bonds → lower interest rates
 There is no ‘’adverse selection’’, Duo has economies of skill and risk pooling advantage
 The government want their population to be well educated → more productive, higher
income, higher taxes
Therefore education is a positive externality
Low interest is indirect subsidy on education

3. There are three main functions of money. Do you think Bitcoins classify to be “money” according
to these criteria? Explain.

I do not think we can classify bitcoin to be money. You can calculate with it, but you cannot buy bread
with a bitcoin when walking into a grocery store. It is not internationally accepted as a measure of
exchange.

Answer sheet:
 Medium of exchange: not accepted everywhere→ high transaction costs
 Unit of account: could be, but value is quite volatile so not well suited
 Store of value: value is very volatile

, 4. Explain why an efficient working financial system might lead to higher productivity and economic
growth in an economy.

An efficient working financial system is a secure system where every person trusts the financial
system. This means that people will trust banks with their money, they will trust they will be paid and
with the paid amount of money that they can buy goods. When there is trust in money and in the
financial market (no expected deflations etc) then there is room for consuming more. This will lead to
more products → more productivity (more needs to be produced).

Answer sheet:
 Efficiënt transfer of funds from savers to borrowers. These borrowers have to be actors who
can have highest return on investment.
 Optimal allocation of capital
 If so, capital flows to most productive investment opportunities, this increases productivity,
this creates economic growth

* 5. The financial position of Dutch pension funds depend on the so-called “rekenrente”. This is the
interest rate that is used to discount all future obligations to the present. Explain why and how this
“rekenrente” influences the current financial position of pension funds.

This rekenrente influences the current financial position of pension funds because in this way they will
be prepared for the future situations.

Answer sheet:
 Pensions have to calculate, based on the promised payouts per person and life expectancy,
how much money they have to payout in the future.
 These future payouts are ‘’discounted’’ to the present to calculate the ‘’present value’’. They
do this using the ‘’rekenrente’’.
 They compare this present value of future payouts to the amount of capital they have right
now.
 This means that if:
the rekenrente is high, they need less capital right now
the rekenrente is low, they need more capital right now
 Therefore the rekenrente influences the financial position of pension funds.

6. At this moment, the interest rate on most savings accounts are just above 0%. Explain why, if you
don’t withdraw or deposit any money, the real value of your savings account decreases over time.

The real value of your savings account decreases over time, because the value of money becomes less
in the future because of inflation. It might be that your money has increased with 0,001% but it is not
as much as it’s real value has decreased over time. You can now spend it on way less goods, than you
could before.

Answer sheet:
 Interest on savings accounts in the Netherlands are between 0 and 0.5 percent
 Inflation around 1.5% last year
 This means that the real value of savings decreases over time

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, Bancontact of creditcard en je bent klaar. Geen abonnement nodig.

Focus op de essentie

Focus op de essentie

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper fitorezyh. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €2,99. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 64419 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Start met verkopen

Laatst bekeken door jou

Samenvatting ·

(7)

Summary Clinical Psychology: A modern health profession by Linden, Hewitt Ch 10, 11, 12, 15

Tentamen (uitwerkingen) ·

(0)

MAT3700 - ASSIGNMENT 1 SOLUTIONS (SEMESTER 02 - 2023)

€2,99
  • (0)
In winkelwagen
Toegevoegd