How are financial firms able to make profits?  Under what circumstances are their profits limited?

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: use the term Commercial Banks to answer the question below   Explain the purpose of this type of…

A: A bank is an institution in which an individual or consumer deposit their extra or ideal cash and is…

Q: People should buy bonds when they think that interest rates are as high as they will go.

A: A bond is a financial instrument that allows an issuer to raise capital by borrowing money from…

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: Briefly discuss two (2) risks that a bank faces when it takes in short term savings deposits and…

A: Banks always lend using deposits made by the customers. But it is not recommended to lend using…

Q: What should be the role of government in regulating financial institutions?

A: In the financial market, financial institutions are the players that act as the both the supplier as…

Q: In which form of business ownership is the principal-agent problem likely to be the greatest…

A: Business: An organization by which goods or services are sold for earning profit.

Q: Identify two financial intermediaries. What are their respective functions? What are their major…

A: The middlemen in the financial transactions between borrowers (firms or individuals) or lenders…

Q: Providing tax shelters through investment is one of the main functions of the financial system. *…

A: Tax shelters are necessary, despite the fact that they are sometimes seen negatively. Individuals…

Q: Which of the following is not a primary participant in the financial marketplace? a.  governments b.…

A: A financial market is a place where stocks, bonds, and money are exchanged.

Q: “Fat finger” trades are sometimes blamed as the cause of “flash crashes” in financial markets. What…

A: What is a Flash Crash?  A flash crash can be defined as an occasion in electronic protections…

Q: 1. What is the efficient market theory? 2. What is "Alpha"? 3. Describe the basics of "financial…

A: As you have asked multiple questions, only the first one will be answered. 1. The efficient market…

Q: What are some examples of financial assets? Rank these examples in order of their risk.

A: A financial asset refers to the liquid assets that get their value from a contractual right or…

Q: Is an economy both social and a financial system?

A: An economic system, also known as an economic order, is a method of producing, allocating resources,…

Q: Explain why emerging market economies is important in financial markets?

A: Financial markets represent the marketplace in which the buyers and sellers trade various financial…

Q: Millennials Should Shop Around for Banks Banks are in business to make money for their shareholders,…

A: Bank is the financial institution which pools the deposit from the customer and provides loans to…

Q: Why do you think that U.S. banks are prohibited from holding equity as part of their own portfolios?…

A: PLEASE NOTE AS PER THE BARTLEY  Y POLICY I HAVE ANSWERED FIRST QUESTION. PLEASE POST ANOTEHR…

Q: What is a balance sheet? What is net worth?

A: Balance sheet and net worth are part of financial analysis and accounting.

Q: Market interest rates are established by the banks or any financial institutions. True or false?

A: Answer -  Market Interest rate - It is the interest rate given on the deposits or other investments…

Q: Match each of the following players in the financial system with the financial product(s) they are…

A: Commercial Banks deal in Bonds & Loans. The bonds generally include Fixed Deposit Bonds…

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 vital role do demand and supply play in the stock exchange?

A: The Law of demand states the inverse relationship between the quantity demanded of a good and the…

Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…

Q: Millennials Should Shop Around for Banks Banks are in business to make money for their shareholders,…

A: It is the strategy of banks to increase number of accounts.Therefore to maximize profit.

Q: ) (i) On April 7th, 2020, Fitch Ratings Inc. downgrades Australia's four biggest banks credit…

A: I) When the fitch rating has downgraded the 4 biggest bank of the Australian economy it will mean…

Q: What are the most liquid assets?

A: A liquid asset is that type of asset which can be easily converted into cash in a very short period…

Q: What has happened to the profitability of financial firms in the US economy in recent decades? Why…

A: After the global financial crisis of 2008-09, US financial companies have been doing very well;…

Q: What is the difference between an asset and liability?

A: In economics and also in business(accounting), it is vital to weigh the assets that a company owns…

Q: How do economists define equilibrium in financial markets?

A: The price is the difference between what providers receive and what demanders pay in any market.…

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: 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: What was the great depression, what triggered it, how long did it last, and how did the concepts of…

A: Great Depression The Great Depression was the worst economic downturn in the history of the…

Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?

A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…

Q: Why is ownership of a corporation the easiest to transfer?

A: A corporation  varies from a sole proprietorship and a partnership in that it is a separate legal…

Q: If interest rates increase in financial markets, then...

A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…

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: "At the time of the Great Depression the Secretary of the Treasury Andrew Mellon was quoted as…

A: The answer is - he thought the economy have to squeeze out excess which had accumulated in the 1920…

Q: In chapter 7, "Financial Markets," of the book Naked Economics, the author, Charles Wheelan, states,…

A: Economists are the people who give their findings in a theory form or as a model.

Q: Briefly describe and explain the following investments terms        a) savings  c) Mutual funds  e)…

A: Investments can be either economic or financial in nature. Purchases of goods and services required…

Q: seven major financial institutions

A: Financial institutions today help the economy to lend, distribute and borrow money for various…

Q: Homework (Ch 26) 1. Financial institutions in the U.S. economy Suppose Kenji would like to use…

A: Company k would like to use $2000 of his saving to make a financial investment by purchase stock or…