How can we raise the capital specification for shadow banks and depository institutions and make them counter-cyclical?

Q: Explain in detail the function played by the money market in the financial market.

A: Money market is a type of market which involves trading in short-term debt financial instruments.

Q: Is it financial expediency for firms to borrow?

A: The acquisition of debt funds by businesses is far more convenient than any form of funds and far…

Q: What are some moral hazard issues with structured finance?

A: Introduction : Moral hazard is an economic term used to describe a situation in which one party in a…

Q: What are the main sources of funding for commercial banks?

A: Banks are a financial institution that receives money from customers and makes a loan to the…

Q: How can herding behavior and behavioral financecontribute to market bubbles?

A: Herding behavior indicates how investors tend the actions of a larger number of investors group,…

Q: What is capital rationing? What types of firms might encounter capital rationing?

A: A plan adopted by any organization to limit the several new projects or investments in any…

Q: What is meant by the ''institutionalization'' of capital markets?

A: ''Institutionalization'' of capital markets refers to the gradual domination of the capital markets…

Q: Is an investment pool is equivalent to a firm's treasury? How?

A: Introduction Investment is an important financial activity of an organisation. Every Organisations…

Q: What is the role of investment banks and how can they help companies raise capital?

A: Solution-   Investment banks are a bridge between investors and also the massive enterprises. The…

Q: Explain how commercial bank mange it balance sheet to maximize its profit without affecting the…

A: Commercial Banks are financial institutions accepting deposits from borrowers and using the deposits…

Q: What is the difference between Investment Banks and regular Banks? explain one small paragraph.

A: Introduction: Investment banks are those banks that are specialize in providing institutional bodies…

Q: Describe the role of capital markets in the capital cycle.  What, exactly do they do?

A: Capital markets play a systematic and tangible role in the capital cycle.

Q: What approach banks may take to determine adequate capital?

A: For a bank it is highly important to ensure capital adequacy. Capital adequacy leads to stability of…

Q: What is the impact of cryptocurrency on the economy? Explain thoroughly.

A: Cryptocurrencies are digital or virtual tokens that use cryptography to secure and verify…

Q: Why does the Businesses go to the capital markets?

A: Capital markets are a place where the process of channelization of savings and investments takes…

Q: What is signalling Theory in finance

A: Signalling theory is nothing but based on the assumption that information is not equally available…

Q: Identify the waysin which banks canmanage their assetsand liabilities to maximize profit

A:

Q: How does capital protect a bank from failure?  Why are banks currently holding capital well above…

A: Introduction: Capital is a bank's own funds and it is the money obtained from its shareholders and…

Q: By chance do you know the answer for the financing activities?

A: Cash flow statement has 3 parts :Cash flow from Operating ActivitiesCash flow from Investing…

Q: How relevant is capital to the operations of universal banks

A: Banks refer to the financial institution that is licensed to receive deposits and lend out loans.…

Q: Fill in the blank: Money market is the source of _________ finance.

A: Money market is a highly liquid and safe market consisting of negotiable instruments like treasury…

Q: HOW IS BLOCKCHAIN TRANSFORMING CAPITAL MARKETS?

A: Blockchain is a mechanism that facilitates digital transactions such as recording transaction…

Q: Explain in fully the function of the money market in the context of the financial market, please.

A: Money market is a type of market which involves trading in short-term debt financial instruments.

Q: What is Qualitative Asset transformation (QAT) and how does it facilitate financial intermediation…

A: QAT is an important concept related to banks and financial institutions. QAT, as the name indicates,…

Q: Which of the following statements describes the cost of capital?…

A: Cost of Capital refers to that rate of return that a firm expects to earn from its investments for…

Q: Explain the concept of “working capital” in finance

A: The investment decision made in financial management is classified into two categories as…

Q: ring and explain its advantages and disadvantages. Why might a bank be interested in a company’s…

A: Gearing : In simple words, gearing refers to the ratio of the company debt to equity. It depicts how…

Q: What are the basic arguments for increasing capital requirements at large commercial banks? In what…

A: The primary argument is that the risk is lesser if the bank increases its capital. In other words…

Q: What are nonconventional monetary tools used by central banks?

A: Monetary policy can be conventional and unconventional which are used by the central banks for…

Q: anks assess the risk appetite of each customers in terms of investment.

A: Step 1 "The aggregate degree and risk categories the financial institution is willing to embrace…

Q: Why are banks currently holding capital well above the minimum regulatory requirement?

A: Capital is the main and important ingredient of banks, without capital , we cannot run a bank,…

Q: What is Behavioral Finance and why can it cause such a great effect in overall finance and investing…

A: Traditional theory states that investors are rational. Investors take decisions on the basis of all…