Which of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of these

Which of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of these

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section13.9: Factoring, Receivables Lending, And Customer Funding

Problem 1CC

See similar textbooks

Related questions

Q: A financial market serves what purpose?

A: Introduction: Financial markets are a type of marketplace, by the name itself, that gives a road to…

Q: xplain the functioning of different players in financial market.

A: Financial Market In general, a financial market is a market where we can sell and buy securities.…

Q: Explain in detail the role of Money Market with respect to financial market?

A: Financial market is a market where the financial instruments can be traded. Financial market can be…

Q: Could you explain the relationship between money, credit, and financial firms? Explain

A: A financial institution (FI) is a firm that deals with financial and monetary transactions such…

Q: What do you mean by Financial Market?

A: Financial market: By distributing resources and producing liquidity for businesses and…

Q: Hence, he seeks your help to identify the functions of financial market. Which of the following…

A: A business market is such where people are allowed to do business by performing economic activities…

Q: Explain the concept of “Value-at-Risk” (VAR) in the context of banks’ credit risk management. How is…

A: Credit Risk: A bank engages in the business of accepting deposits and funds and lending the funds…

Q: 1. What are financial markets? 2. Differentiate the different types of financial markets.

A: Financial markets facilitate the transfer of savings and investments. This thus makes it easier for…

Q: Discuss the concept of finance and money from the perspective of a consumer and an investor.

A: Money is a concept that is very difficult to interpret or define in exact terms. Money can be…

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: Explain the functioning of different players in financial market.

A: Financial Market A financial market, in general, is a market where we may sell and purchase…

Q: What is the basic function of a financial market?

A: Financial markets are a type of marketplace, by the name itself that gives a road to the selling and…

Q: financial

A: Markets where financial assets are exchanged are known as financial markets. Such markets make…

Q: What's the connection between financial intermediaries and securitization? When securitization moves…

A: This question explains about the connection between financial intermediaries and securitization

Q: Which of the following is a characteristic of a money market financial instrument?

A: Money market financial instruments are those instruments which have short maturity period of up to a…

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: 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 the primary role of the financial market?

A: Financial market is a place where trading of various securities such as stocks, bonds, forex,…

Q: Why money markets are important ? Discuss the types of money market instruments...

A: Money market The money market is referred to as an organized exchange market where lending and…

Q: What is the meaning of FINANCING in the financial market?

A: Financial market is a marketplace where trading of securities takes place. Securities include bonds,…

Q: What are the problems encountered by the financial system? What is/ are assessment to these…

A: The group of institutions like banks, insurance companies, mutual funds, stock exchanges, etc. that…

Q: Discuss the important of financial market, then illustrate with a diagram the flow of funds from…

A: Financial market is a market of creation and exchange of financial assets. If you buy or sell…

Q: What is off balance sheet financing? Why do we care about it?

A: Financial statements can be defined as a summary of the financial performance of the business over…

Q: What does the term "financial market" refer to exactly? Explanation of how it works

A: Introduction: Financial markets are very important to economic progress and national development.

Q: A. Discuss main theories of financial intermediation and their rationale for the existence of…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: One of the roles of financial markets is to: O A. conduct fiscal policy. O B. transfer funds from…

A: In today's era of globalization, Financial market is the most important and indispensable part of…

Q: What exactly does the term FINANCING signify in the financial market

A: Introduction: In the financial market, securities are sold and bought. An investment in securities…

Q: Discuss the different components of the Financial System and its importance

A: I am answering the first question out of the two submitted questions as per bartleby guidelines.…

Q: What are the types of Financial Market? Define each type.

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: Describe the nature of the basic services of financial institutions.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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: Why money markets are important? Discuss the types of money market instruments..draw a flow chart.

A: Money market deals in instruments that have a duration of equal to or less than a year. This market…

Q: Based on your understanding of the fAactors that affect the cost of money, Identify which of the…

A: Higher inflation rate would lead to higher interest or nominal rate on the borrowed amount. This is…

Q: What are the distinguishing features of a money market instrument? Please answer in broad

A: The market where buyer and seller interact in order to buying and selling of short-term securities…

Q: What are the components of an interest rate? Why is it important for accountants to understand these…

Q: is the meaning of Financial Markets? Name and differentiate all the types of financial markets

A: Step 1 Financial markets contribute to the smooth operation of economies by allocating resources…

Q: market

A: Financial markets refer to markets where securities trading takes place. Securities that are traded…

Q: Evaluate and summarize some monetary policies which will affect a particular type of financial…

A: Monetary policies refer to those economic actions which are taken by the central bank of a country…

Q: What are the concepts of finance and money from the perspective of investors and consumers?

A: Solution- Consumer Finance Perspective- A client continuously needs to meet his desires with…

Q: What are the importance of Financial Market?

A: Financial Market: It is the market where financial securities and derivatives are traded by people…

Question

Which of the following is the function of the financial market ?

Select one :

a . It decides the interest rate

b . It makes loan available

c . It channels funds from lenders - savers to borrowers - spenders

D. None of these

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Explanation:

VIEW

Step 3: Conclusion:

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Which one of the theories states that “the rate of interest is set in the market for money balances”? Time-Preference Theory of Interest Liquidity Preference Theory Fisher’s Law Loanable Funds Theory of Interest Rates
For every debit, there is credit is stated in which concept? A. Money Measurement Concept B. Dual Aspect Concept Revaluation Reserve Market Value
Which of the following is a characteristic of a money market financial instrument? O A. High risk B. Low risk C. Low credit quality O D. Equity instrument
Which of the following is not a primary function of Money? a. All the options are correct b. Alternative source of repayment c. Measure of value d. Medium of exchange
I need answer ASAP 1.b)Bills payable and promissory notes are negotiable instruments and are used mostly to replace_____Select one:O a. financial meansO b. term loansO c. long-term creditO d. trade creditO e. overdraft facilities
Answer the following statements It is an average interest rate that banks offer in the financial market: a. effective rate b. Cetes c. CPP d. TIIE It is the payment for the use of someone else's money: a. simple interest b. interests c. amount d. interest rate
The _____ ratio gives actual losses on loans, while the ______ ratio gives the extent to which the bank’s assets are devoted to loans. a. loss rate; capitalization b. loss rate; loan risk c. loan risk; loss rate d. operating efficiency; loan risk
Which of the following statements about savers, borrowers, financial system and financial intermediaries is true: i) Savers receive less interest than what borrowers pay ii) Savers receive more interest than what borrowers pay iii) The stock market is a financial intermediary iv) The stock market is part of the financial system v) Financial intermediaries channel funds between borrowers and savers O i, ii, and iv O i, i, and v O ii, iv, and v O i, iv, and v
Explain your understanding of money markets? Would you classify this as a financial market, financial instrument or financial institution? Give a reason for your answer.
Which of the following is a Long Term Source of Finance? a. Customer Advances b. Equity Shares c. Trade Credit d. Bank Credit
Which one of the following is not a part of money market? a.Call money market b.Commercial bills c.Treasury market d.Stock market
A bank's net interest margin represents the proportion of its investments that are financed with borrowed funds. Group of answer choices: True False