Which statement is not correct? A. The main objective (role) of financial intermediaries is to convert savings of SSU’s into investments. B. Financial intermediaries purchase financial claims with a set of characteristics from DSU’s and sell financial claims with characteristics tailored to the desires of the SSU’s.

Which statement is not correct? A. The main objective (role) of financial intermediaries is to convert savings of SSU’s into investments. B. Financial intermediaries purchase financial claims with a set of characteristics from DSU’s and sell financial claims with characteristics tailored to the desires of the SSU’s.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4QTD

See similar textbooks

Similar questions

What are the basic risks faced by financial intermediaries? Discuss each thoroughly.
Which of the following would be part of a financial manager's investment decision? *a. Collecting receivables from customersb. Paying loansc. Allocating funds for permanent current assetsd. Paying dividends to shareholders
Which of the following acts as an intermediary between the savers and investors by mobilising funds between them? a.Financial Markets b.Households c.Financial Instruments d.Government
Which one of the following choice is not one of the ways to transfer savings to those in needs of funds? Direct transfer Indirect transfer using the investment banker Person to person lending Indirect transfers using the financial intermediary
Discussion questions: What are the basic risks faced by financial intermediaries? Discuss each thoroughly.
Statement I: Users of the funds from finanical institutions and markets have the obligation to return the same without interest. Statement II: Financial instituions and markets are also concerned with creating financial asstes. Statement I is true. Statements I and II are false. Statement II is true. Statements I and II are true.
The work finance is defined as, except: a. The money management and the process of acquiring needed funds b. Allocating investors funds amongst financial assets to accomplish their objectives c. Maximization of profits to accumulate funds and serve short-term goals of owners d. The framework for making decisions on how funds are obtained and then invested
Illustrate with a diagram the flow of funds from lenders to borrowers in a financial system. Diagram must include: Savers Borrowers Financial markets Function of the financial intermediaries Function of the financial markets Direct finance Indirect finance
Safety of investments comes under objective of financial management: a. Basic objectives b. Operational Objectives c. Research Objectives d. Social Objectives
Which of the following is a fund based financial service? O a. Merchant Banking O b. Issue Management O c. Credit Rating O d. Consumer Credit
Which function of a financial intermediary reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings? Select one: a. Administration of the payments mechanism b. Information production services. c. Money supply management. d. Asset transformation services. e. Brokerage services.
Which of the following best describe the flow of funds in a financial market? *a. suppliers of funds to demanders of fundsb. Financial market to suppliers of funds to demanders of fundsc. demanders of funds to suppliers of fundsd. suppliers of funds to financial institutions to demanders of funds