Q: What is a financial intermediary?
A: Answer: Financial Intermediary: Financial intermediary refers to an entity or institution that acts…
Q: Analyze and discuss the whole Philippine financial system, specifically the banking and non-banking…
A: Government and central bank are important for the economy. Some countries have certain resources in…
Q: Explain the uses of financial instruments
A: Money has been used since ages. Many years ago there was barter system in which goods were exchanged…
Q: With relevant examples, discuss the functions of a financial market.
A: Functions of a financial market #1 – Price Determination The financial market plays out the…
Q: What did the McKinnon and Shaw predict about the movements of interest rates once financial markets…
A: We have show that, McKinnon and Shaw predicted that interest rates would rise when it càme to…
Q: Explain how financial intermediaries reduce a. Adverse selection; and b. Moral hazard.
A: Adverse selection- Adverse selection usually refers to a condition in which sellers have information…
Q: In Vietnam now are striving for reaching more clients and customers by eliminating transaction fees,…
A: There are many risks that a financial institution may pose, like transaction risks, credit risks,…
Q: Explain the ways in which financial institutions manage credit risk.
A: Credit: This term has numerous implications in the financial world, however, acknowledge is, for the…
Q: financial market
A: The safety of the asset depends on few characteristics. These will decide weather the asset is safe…
Q: Explain the following statements: "(1) individual financial institutions will generally have…
A: Financial institutions are also known as banking institutions which provides intermediary services…
Q: Why are non-banking financial companies valuable to the financial system? Elaborate all the…
A: India's financial administration's area is colossal. It doesn't simply contain business banks yet in…
Q: Which Government/non-Government institutions are involved in regulating the financial system of…
A: Pakistan’s financial system comprises banks, Microfinance banks(MFBs), NBFCs, Development Finance…
Q: Identify which item is not one of the six parts of the financial system. Answer a. Credit cards b.…
A: A financial system is a group of institutions that authorize the exchanging of money, such as banks,…
Q: What is the main purpose of financial regulation? What kind of instruments may a government use to…
A: Financial Regulation : Financial Regulation can be defined as a form of regulation, laws or rules…
Q: Why would haircuts on collateral increase sharply during a financial crisis? How would this lead to…
A: Haircut means the disparity b/w the amount of a loan & collateral which is set up for it. For…
Q: Why are companies' liquidity ratios calculated and which assets are more liquid?
A: Liquidity ratio: It is a type of financial ratio.
Q: Why is it important for people who own stocks and bonds to diversify their holdings? What type of…
A: System that permits exchange of funds between the borrowers, investors and lenders via the medium of…
Q: Discuss the role of government in financial intermediation. Do you think government must be a player…
A: The primary goal of financial intermediation is to facilitate funding between savers and borrowers.…
Q: What are the seveb major types of financial institutions as of today?
A: Financial Institutions Financial institution refers to the institutes which provide the services…
Q: Name and briefly explain what are the 5 functions of capital in financial institutions
A: FINANCIAL INSTITUTION: A financial institution facilitates transactions and is the…
Q: Why do bubbles form, and how can they turn into financial crises?
A: When one or more major financial assets, such as stocks, real estate, or oil, lose a significant…
Q: What would happen if the us treasury department stopped issuing new securities?
A: Although rare, especially in the case of US Treasury securities, such a situation might have…
Q: Why is there a need to regulate Investment banks?
A: Investment banks are companies or corporate divisions that functions as an advisory in the financial…
Q: Which of the following is not a function of financial intermediaries? A Deal with asymmetric…
A: Financial intermediaries refers to as an entity which acts as a middleperson between two entities in…
Q: How the lemons problem could cause financial markets to fail? Explain it with using your own words,…
A: In perfectly competitive markets, the information is equally shared by the economic agents-…
Q: They act as mediators between two parties: those who supply funds and those who seek them. * A.…
A: Companies that deal in financial and monetary transactions are classified as financial institutions.…
Q: How would a financial manager's role in a corporation increase/decrease if the rate of inflation in…
A: Inflation has its own pros and cons. Consumers are worse-off with inflation but investors can enjoy…
Q: Explain why the existence of financial institutions can allocate financial resources better!
A: Good financial sectors mean banks and financial institutions have a major role to play in the health…
Q: What are the different Financial Intermediaries and explain how they carry out the objectives of the…
A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…
Q: Financial liberalization is eliminating various forms of government intervention in financial…
A: The liberalization refers to the process of reducing the government intervention in the economic…
Q: List the main function of investment banks in the financial system?
A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…
Q: Financial Sector Reforms in Ghana from 2007 to 2020 Impact on the reforms of the economy
A: Empirical data suggest that the economic growth in the African nation of Ghana has been an…
Q: 24. Financial institutions that cut back on their lending are engaged in A) liability management B)…
A: In an economy, lending refers to transferring excess funds of an individual or institutions to the…
Q: discuss three ways in which banks are to make profit
A: ‘Commercial Banks’ are the financial institutes that mainly accepts deposits, gives loan and other…
Q: “In a world without information costs and transactioncosts, financial intermediaries would not…
A: Financial intermediaries are institutions that connect the borrowers and lenders by acting as the…
Q: Explain why repurchase agreements (repo) and securities are used as a lending practice in capital…
A: For government securities dealers, a repurchase agreement is a type of short-term financing. When a…
Q: Why are the number of traditional banking systems inindustrialized and developed countries…
A: Traditional banking system focuses on the physical existence of banking with offices and providing…
Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…
A: Interest rates affect the profitability of financial institutions. The financial institutions…
Q: functions of financial institutions, how do you explain the impact of these functions on: 1.…
A: Q2. 1. Investor decision functions are based on the rate of interest in the market, if the rate of…
Q: Are near money's highly liquid financial assets or many financial asset?
A: Near money is a financial economics term describing non-cash assets that are highly liquid, such as…
Q: Why is a capital market needed when there is a banking system in the financial market? Explain?
A: Capital market provides the platform for the exchange of stocks, debentures and the securities. The…
Q: How do we restore confidence in the financial and banking industries and our political systems?
A: Introduction: The Industrial Revolution was one of the most significant events in human history,…
Q: What role does weak financial regulation and supervision play in causing financial crises?
A: A financial crisis is a situation where some financial assets of a nation suddenly lose a huge part…
Q: seven major financial institutions
A: Financial institutions today help the economy to lend, distribute and borrow money for various…
- What should be the role of government in regulating financial institutions?
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