What is the connection between securitization and the economic function of financial intermediaries? What happens to financial intermediaries when the process of securitization moves forward?

Q: How do transaction costs and asymmetric information hinder the growth of financial markets?

A: Transaction cost : transaction cost are expense incurred when buying or selling goods or services.…

Q: How is investment banking different from retail and corporate banking? Explain in a flowchart.

A: Retail Banking is the type of Banking which provides banking services or financial services to the…

Q: What does it mean for a financial market to be considered (a) informationally efficient and (b)…

A: The financial market is a market where investors and traders buy and sell securities at a low price…

Q: Bank-based systems of financing non-financial companies are more effective than capital market-based…

A: Financial systems can help to keep domestic savings at home if they are well-governed. Financial…

Q: Why are financial intermediares so important to an economy?

A: Definition : In simple words, financial intermediaries refers to the individuals and entities that,…

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 are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: What distinguishes a money market instrument from other financial instruments? Please give us a wide…

A: The money market is the market where buyers and sellers engage in purchasing and selling short-term…

Q: “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both…

A: A financial intermediary is a middlemen between a financial transaction. Examples of financial…

Q: Why is corporate finance important to stakeholders?

A: Corporate finance generally deals with the sources of funding i.e the entity's capital structure. It…

Q: How does the financial market facilitate corporate finance and investment management needed

A: Financial market is the market in which financial instruments are sold and brought by the…

Q: What allows financial institutions to generate a profit? What are the conditions under which their…

A: THE INTRODUCTION: The marketplaces where financial assets and instruments are traded and the sites…

Q: financial intermediaries play a crucial role in an economic crisis-they are responsible for both…

A: Financial intermediaries: Financial intermediaries are organization which are acts as a link between…

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: Deferring roles of financial institution play in economy

A: Financial institutions, also referred to as the banking institutions, are the corporations that…

Q: Why securitisation may be very beneficial for both institutions and investors ?

A: explanation Securitization is beneficial because it provides possibilities for investors while also…

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 do you mean by non quantifable factors ? (Corporate Finance)

A: Quantifiable factors in corporate finance refer to the financial numbers that defines the company’s…

Q: WHY IS MONEY MARKET IMPORTANT FOR BUSINESS?

A: The money market is a market of funds in which short-term funds are provided to the entities that…

Q: What are the ways in which a bank can increase its capital adequacy ratio?

A: Capital Adequacy Ratio or CAR is referred as the measure through the capital for the bank that are…

Q: Does it ever make sense for a profitable company with positive cash flow to seek external financing?…

A: External financing is any kind of business funding you acquire from sources outside the company.…

Q: How does extence of rivalry among competitors in the banking sector affect the investment industry…

A: The global financial crisis rekindled policymakers' and academics' interest in bank competition and…

Q: what is the efficient market hypothesis. What does it say, if any, about individual financial…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: Financial markets: efficient and other.  How are financial firms able to make profits? Under what…

A: Introduction: Usually, financial institutions such as banks and insurance providers raise and pool…

Q: Which of the following is false regarding the secondary market? a) Secondary markets provide the…

A: Secondary markets are financial markets where investors and traders can purchase and sell securities…

Q: What are the disadvantages of the financial intermediaries and the negative ways they can impact the…

A: A financial intermediary is that entity that acts as a middleman in a financial transaction taking…

Q: how do banks improve asset utilisation to increase Return on Equity and what are the risk…

A: Banks are the financial institutions which deposit money from customers at lower interest rates and…

Q: What is "Intermediation" and why do we use Financial Intermediaries, instead of direct finance, for…

A: Financial intermediary is the organization which acts as a link between the investor and the…

Q: What do you mean by financial standpoint? (Corporate Finance)

A: The term finance has a broader scope which is used by the company in terms of money or capital. In…

Q: Explain the use of Economic Capital in measuring risk among financial institutions and its…

A: Economic capital measure risk in terms of capital. It is necessarily the capital amount that a…

Q: What are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: financial institutions im

A: Introduction : In simple words, financial institutions refers to the entities that are engaged in…

Q: What are the important implications for financial managers when markets operate efficiently?

A: Market efficiency is a concept that shows information is transferred from one to one in a perfect…

Q: What are the implications of excess liquidity for the stability of the financial sector?

A: Financial system is defined as the range of the stability, when it used to dissipate the financial…

Q: What are some other investment banking activities?How did these increase investment banks’ risk?

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’…

A: Securitization is a method in which assets are converted in securities by using financial tools.…

Q: What are the major economic functions of the interest rate? How might the fact that many businesses…

A: Interest is the price paid by the borrower for using the money borrowed from the lender.

Q: What is the impact of capital controls that restrict mobility of capital across nationalborders on…

A: Capital controls are the controls that are implemented on the international movement of capital.…

Q: Why are financial intermediaries a bigger and more important source of funds for investors than…

A: There are a lot of functions a financial intermediary generally performs . The most important is the…

Q: In order to earn money, how do financial institutions do it? What conditions restrict their ability…

A: Introduction: Financial markets are the exchanges on which financial assets and instruments are…

Q: What are Critical success factors of the investment sector or banking sector?

A: Banking is the ultimate expression of using other people's money to generate profit. Banks use…

Q: What is the importance of International Financial market ? How does it facilitate business…

A: The International Financial Market is a marketplace for individuals to trade their financial riches…

Q: What is market efficiency? Define. In addition, what are the important implications for financial…

A: Market efficiency is a concept that shows information is transferred from one to one in a perfect…