1-Define asset liquidity. Provide an example of a highly liquid and highly illiquid asset?
1-Define asset liquidity. Provide an example of a highly liquid and highly illiquid asset?
Homework Answers
Asset liquidity in simple terms can be defined as the easiness with which an asset can be converted in cash or cash equivalent because it can be sold after us3
It is very important sometimes because a bank or corporates to have easy liquidity so that an emergency or some need, it can be easy converted
And examples are highly liquid assets include all current assets that a company has.
Other examples are government bonds, stocks, etc
Example of less liquid or illiquid asset is work in progress(WIP) and intangible asset.
Add Answer to:
1-Define asset liquidity. Provide an example of a highly liquid and highly illiquid asset?
A highly illiquid bond that pays no interest but might entitle its holder to rental income...
A highly illiquid bond that pays no interest but might entitle its holder to rental income from an asset is most apt to be a: put bond. structured note. NoNo bond. contingent callable bond. sukuk.
You are the bank's liquidity manager. What should you do if the liquidation cost of highly...
You are the bank's liquidity manager. What should you do if the liquidation cost of highly non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity (increased/decreased/did not change). The cost of illiquidity (increased/decreased/did not change). Therefore it makes sense to (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide (more/less/the same) liquidity transformation for society.
Marketable securities typically are - A Highly liquid and easily sold if necessary B Selected to...
Marketable securities typically are - A Highly liquid and easily sold if necessary B Selected to provide liquidity with low risk (and consequently low return). C Low risk, low return investments D Selected for short-term maturity and high credit ratings E All of the above.
You have been asked to review a memo on how market liquidity is affected by shocks...
You have been asked to review a memo on how market liquidity is affected by shocks to the financial system. Which of the following observations made in the memo are incorrect. Explain why. In periods of acute market stress, market liquidity typically increases in the most liquid markets, creating a self-correcting loop that will ultimately remove downward pressure on asset prices Evaporation of market liquidity is an important factor in determining whether and at what speed financial disturbances become financial...
1. a, Define the term: Socialization b, Provide an example of primary socialization c, Provide an...
1. a, Define the term: Socialization b, Provide an example of primary socialization c, Provide an example of secondary socialization
A financial institution can offer customer deposit accounts that are highly liquid and have low risk in order to fund ba...
A financial institution can offer customer deposit accounts that are highly liquid and have low risk in order to fund bank assets that are illiquid with higher risk because of both ___________ and ____________. A. Primary markets; foreign exchange markets B. Monitoring; diversification C. Free riders; regulation D. Price risk; collateral
Dealing with the criminal justice field; Define the term interval variable and provide an example. Define...
Dealing with the criminal justice field; Define the term interval variable and provide an example. Define the term ratio variable and provide an example. Define the term ordinal variable and provide an example. Define the term nominal variable and provide an example. Why are the levels of variables important
Alter the Diamond-Dybvig model in the following way. Suppose that there are two assets, an illiquid...
Alter the Diamond-Dybvig model in the following way. Suppose that there are two assets, an illiquid asset that returns 1+r units of consumption goods in period 2 for each unit invested in period 0, and a liquid asset that returns one unit of consumption goods in period 1 for each unit invested in period 0. The illiquid asset production technology cannot be interrupted in period 1. The model is otherwise the same as in class. a. Determine a consumers lifetime...
6. Define pheromone and provide an example.
6. Define pheromone and provide an example.
Address the following items. 1. Define necessary and sufficient conditions. Provide an example from healthcare that...
Address the following items. 1. Define necessary and sufficient conditions. Provide an example from healthcare that articulates the differences. 2. Define inductive versus deductive reasoning. Provide an example from healthcare that articulates the differences.
Alter the Diamond-Dybvig model in the following way. Suppose that there are two assets, an illiquid asset that returns 1+r units of consumption goods in period 2 for each unit invested in period 0, and a liquid asset that returns one unit of consumption goods in period 1 for each unit invested in period 0. The illiquid asset production technology cannot be interrupted in period 1. The model is otherwise the same as in class. a. Determine a consumers lifetime...
6. Define pheromone and provide an example.
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago