question 29
Multiple Choice
Figure:
Table1
Bank product Checking Checking Checking Checking Savings Savings Savings Savings Mutual funds Mutual funds Mutual funds Mutual funds Location USA Europe SE Asia India USA Europe SE Asia India USA Europe SE Asia India Number-of-customers 1,000,000500,0001,100,000300,000700,000400,000900,000800,000300,000300,00080,000
Table2
Location USA Europe SE Asia India Checking 1,000,000500,0001,100,000 Savings 700,000400,000900,000 Mutual Funds 300,000200,000300,000
The numeric values in Table2 indicate the number of customers.
-To have the data for Australia in Table1,you would:
Definitions:
Capital Constraints
Limitations on the amount of capital a company or economy can obtain, often leading to restrictions on growth and investment.
NPV Analysis
Net Present Value Analysis, a method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Cost of Capital
The rate of return that a company must earn on its investment projects to maintain its market value and attract funds, encompassing debt and equity.
Internal Rate
Often referred to as Internal Rate of Return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.