Finance professionals make decisions within three distinct areas: corporate finance, capital markets, and investments. Below is a list of decisions finance professionals must categorize according to the relevant finance area. a. Managers at a bank decide the interest rate to charge for loans offered to prime customers. b. William decides how to reduce costs to free up cash flow for asset acquisition. c. As a technical trader, you analyze investor psychology to inform investment decisions based on investor behavior in specific situations.

Business · High School · Thu Feb 04 2021

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a. The decision by managers at a bank to set the interest rates for loans offered to prime customers falls under the category of "Corporate Finance". This decision involves the internal financial management of the bank and its profitability.

b. When William is deciding how to reduce costs to free up cash flow for asset acquisition, this also relates to "Corporate Finance". This area concerns the efficient management of a company's finances to achieve its business objectives, which includes managing costs and investments.

c. As a technical trader analyzing investor psychology to inform investment decisions based on their behavior in specific situations, this activity is part of the "Investments" area of finance. Investment professionals make use of various strategies, including technical analysis, to make decisions about buying and selling securities in the financial markets.

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