COMMERCE 2FA3 Lecture Notes - Lecture 1: Futures Contract, Dividend Yield, Human Capital

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This activity is the efficient transfer of funds from those with an excess to those with. Those with excess funds are called surplus units. Those with insufficient cant be termed deficit units. Q1 )you are considering an investment, you would have to put out ,000 of your own. Therefore, the return is 20%, this is a good investment if the interest rate is less than. Chapter 1 insufficient. money to finance this investment. You believe by the end of the year you will end up with. 20%. keeping money in bank. supplied/more people will supply must be repaid at some future date. are nominal interest rates, which means that they are expressed in money terms. You will have ,000 at the end of year. Therefore this is a good investment because you can do better investing rather than. An interest rate is a price: it is the price of resources today in terms of resources that.

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