Thinking about a bond, an economist would argue that it really is ... Group of answer choices 1. A financial instrument that is illegal in the United States 2. A way for companies or governments to borrow money 3. A way for citizens to borrow money from companies 4. A financial instrument issued by private citizens

Q: why yield to maturity is important in pricing loans in financial system?

A: Yield to Maturity is the rate of return or the interest rate of a fixed-rate security, such as a…

Q: Economists assert that financial markets serve the function of efficiently allocating capital. What…

A: The stock market, bond market, currency market, and derivatives market are just a few examples of…

Q: 1.Which of the following is not a financial asset? a share of Coca-Cola stock a corporate bond an…

A: Introduction: Financial asset: A financial asset is a liquid asset with a contractual right or…

Q: Describe the difference between financial markets and financial intermediaries? How can your funds…

A: Monetary business sectors and Financial go-betweens are two channels through which the monetary…

Q: 5. Financial institutions in the United States Which of the following are financial intermediaries?…

A: Financial Intermediaries are the institutions that act as mediators connecting lenders with the…

Q: Some people think that financialmarket transactions should be taxed. What are the arguments for and…

A: A financial transaction is a contract between a buyer and a seller to exchange goods, services, or…

Q: Explain the difference between financial institutions and financial markets, please give examples.

A: Economic system significantly depends on financial assets and transactions, therefore financial…

Q: Please discuss the following. 1. Financial markets are institutions and systems that facilitate…

A: The term "financial market" refers to a place or platform where stocks, bonds, currencies, and other…

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: What is the most important way for an economy to recover from an economic crisis caused by credit…

A: Credit denotes a loan, while credit growth denotes the taking of more loans. Credit expansion is the…

Q: Describe the Borrowed-Funds Concept?

A: Lent capital is money which is lent and used for making an investment. This varies from equity…

Q: what are bonds in the top four categories referred to?

A: Bond is generally a loan that is made by a borrower that is the company to an investor. It…

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: 4. Bankers have a reputation for conservatism in politics, dress, and busihess rationale for this…

A: Indeed it is rational. The checking deposit that given by the bank is the best illustration of the…

Q: From a firm’s point of view, how is a bond similar to a bank loan? How are they different?

A: Borrowings are a way by which company gets the finances to do the business operations feasibly. The…

Q: financial market

A: The safety of the asset depends on few characteristics. These will decide weather the asset is safe…

Q: Select the collateral that is consumer goods:  a. Debtor grants a security interest in an oven…

A: The collateral alludes to a resource that a bank acknowledges as security for a credit. It may…

Q: Of the following, which can create an incentive for financial innovation? a. technological change…

A: Financial innovation and technological change can be aided by deregulation.   Deregulation is the…

Q: How do interest rates affect bond yield and bond prices.

A: Bonds are a form of financial security in case of which the issuer owes the holder a debt. Borrowers…

Q: Define the term the Truth in Lending Act?

A: In 1968, the federal enhanced a law known as Truth in Lending Act (TILA) to protect the consumers…

Q: At the Great Recession of 2008, why would Wall Street buy mortgages of people who had really bad…

A: Wall Street buy mortgages of those people who really have a bad credit rating and no down payment…

Q: One of the tasks of a Financial System include providing affordable loans to all consumers and…

A: Allocation of savings into channels of investment in the economy is being done by the financial…

Q: Which type of security has interest payments that are generally exempt from federal income taxes?…

A: T-bonds or Treasury bonds are fixed-rate government debt security by the U.S. with maturity mostly…

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: 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: The suppliers of loanable funds are Select one: a. people who save money at banks. b. banks who…

A: Loanable funds refer to the supply of funds available in financial markets for borrowing purposes.…

Q: Why is it so important to an economy to have fully developed financial markets?

A: Financial markets are those markets in which creation and trading of financial assets take place .…

Q: Question 8 What should I do if I cannot pay off my credit card bill in full? Choose the correct…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Imagine that you wish to launch a start-up online business. You do not have enough capital…

A: Islamic banks are based on Islamic laws which imply principles of Islamic finance and banking have…

Q: Explain the bond markets in the real world.

A: A bond is an advance that the bond buyer, or bondholder, makes to the bond backer. Governments,…

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: 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: One of the biggest problems for any economy is to figure out how to get or transfer money from…

A: Financial markets are very important for the economy. Financial markets include capital market and…

Q: Economics - Chapter 11 Section Review WHAT STEPS WOULD YOU TAKE TO PURCHASE A BOND AND HOw WOULD YOU…

A: A bond is a fixed-income security that reflects a loan from an investor to a borrower (corporation…

Q: Please explain the four main functions of the financial system.

A: The financial system is a network of institutions, markets, regulations, and laws that facilitates…

Q: Discuss the role of banks as financial institutions that fuel the economic growth of a nation.

A: To shape the economic world and the functioning of it, the banking system of a country plays a major…

Q: Banks and the Economy

A: The banking sector is important to the modern economy. As the primary supplier of credit, it…

Q: Richie Rich has applied for a home equity loan. The bank on its part has estimated the market value…

A: Market value of Richie Rich's property =$750,000 Existing mortgage loan on Richie Rich's property…