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: 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: 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: Money is created when  A. a depositor deposits money at the bank. B. a bank grants a loan to a…

A: Money is something that is accepted as medium of exchange . It can be also be stored and act as…

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: 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: Question 13 Which of the following will yield to a bank the lowest return? O Short term loans with…

A: Question 13)  The loans with little risk yields the low returns because the returns were directly…

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: Since 1982, banks and thrift institutions have offered a type of savings account that yields a…

A: The saving accounts which have no minimum maturity are known as certificate of deposits (CDs)

Q: discuss Financial Action Task Force (FATF) & Pakistan in detail.

A: FAFTA is financial Action task force.

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: If you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: Risk refers to the uncertainty associated with an event's outcome. In the finance industry, 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: 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: Financial intermediaries a.reduce the cost of financial transactions. b.provide safety of resources…

A: Answer: Financial intermediaries work as a middleman between the two parties (such as savers and…

Q: How does collateral help to reduce the adverse selection problem in credit market?

A: An adverse selection arises when the quality of the average borrower decreases as the rate of…

Q: What are the main functions of banks? Explain the role played by commercial banks in the economic…

A: Function of commercial banks:-  Primary Functions 1) Accepting deposits:- Primary function of…

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: 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: From a firms point of view how is bond similar to a bank loan how are they different

A: Bonds are a form of debt protection. It is a method for a business to collect funds by selling what…

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: 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: If you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: The Islamic banking system is different from the rest of the world's banking system. It prohibits…

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: The process of bundling loans together and buying and selling these bundles in a secondary financial…

A: A secondary financial market is a market where the securities and financial instruments are sell and…

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: Low-income consumers often don’t have bank accounts and credit cards. Describe how some financial…

A: Unbanked household generally do not maintain accounts at banking institutions.

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: Consider an economy that is composed of identical individuals who live for two periods. These…

A: Utility function : U = c10.5 + c2 0.5 Intertemporal Budget Constraint : c1 + c2 /(1+r)  = Y1 + Y2…