Matching the maturities of assets and liabilities

 

1. What are the advantages of matching the maturities of assets and liabilities? What are the disadvantages? 2. Under the fixed exchange rate system, what was the currency against which all other currency values were defined? Why? 3. Exchange rates fluctuate under both the fixed exchange rate and floating exchange rate systems. What, then, is the difference between the two systems? 4. What are the four elements of a firm’s credit policy? To what extent can firms set their own credit policies as opposed to accepting policies that are dictated by its competitors?

Sample Solution

Matching the maturities of assets and liabilities

Maturity matching or hedging approach is a strategy of working capital financing wherein we finance short-term requirements with short-term debts and long-term requirements with long-term debts. The underlying principle is that each asset should be financed with a financial instrument having almost the same maturity. Maturity matching approach has various advantages and disadvantages. The most significant advantages are that it maintains an optimum level of funds, saves interest cost, no refinancing risk, and interest fluctuation risk, etc. The matching maturity concept helps in saving avoidable costs such as the cost of refinancing in the case of long-term assets being financed with short-term debt. Also, extra interest cost that is fruitless to the company in case of short-term assets being financed through long-term assets is saved. The main disadvantage is its difficulty in implementation.

 

 

 

 

 

Longfellow’s Unique American Hero in Evangeline

A one of a kind American saint unique in long individual in Evangeline: The clarification of Adam’s long individual in the United States is something else. Through the portrayal of the story sonnet Evangelin, the idea of American Adam can be seen in different manners. R. W. B. Lewis investigated the journey for American Renaissance journalists and made a one of a kind American writing in the 1955 content “American Adam in the Nineteenth Century: Innocence, Tragedy and Tradition”.

In 1847, the American writer Henry Wadsworth Long Fellow distributed a long story sonnet about the ejection of the Acadians called Evangeline, delineating an imaginary individual Ivagne. Phosphorus’ quandary. This sonnet got in vogue and got acclaimed. Evangeline oak is a vacation destination in Louisiana. The melody “Acadian Driftwood” recorded by The Band in 1975 speaks to the development and Acadian development. Antonine Maillet composed a novel called Pélagie-la-Charrette because of huge wreck. It was granted to Prix Goncourt in 1979. Fantastic PréPark is Canadian National Historic Site of Grand-Pére, Nova Scotia State and is protected as a landmark to the outcast. It incorporates the commemoration church and the sculpture of Evangeline, the subject of long individual verse. In 2018, Canadian history specialist and writer A.J.B. Johnston distributed YA’s epic called The Hat, propelled by the occasion in the Grand Prix of 1755.

On the off chance that the understudies meet a long individual before attending a university, at that point the writer they know isn’t in this assortment: Evangeline, “Ha Faasha’s melody”, “Million’s romance”. This long individual’s assortment is our “revisionist” long individual in the second 50% of the twentieth century and nearly perceives renowned journalists who may have thought of them, aside from sonnets like “Hymns of life” can not. On the off chance that verse understudies don’t really peruse Long Fellows, he just tuned in to him (in an ordinary case) and they need to know why he is so celebrated.

These are a ton of extraordinary writers. Long Fellow is one of only a handful barely any writers who joined new works. He made a few best sonnets ever. Sonnets of the Evangeline, Haihuasha tunes, and long individual stories, for example, Miles Stendish’s tribute give a sentimental perspective on the early American history and vote based goals. Evangelin is perhaps the longest sonnet at any point composed by an essayist. It is mainstream through the differentiation everything being equal. It is perused, cherished and thought in an unassuming bungalow (Wagonknecht P.85). Evangelin is difficult to misrepresent his style at home and abroad, which is the principal long verse that rose above his own time in American writing (Wagonknecht P.85)

 

 

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