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3. what are the strengths and weaknesses of the Caribbean stock exchange?
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- 1. What is stock exchange? 2. Discuss how the stock exchange is done in the Caribbean?Explain why financial markets are increasingly becoming global.a)What is meant by market failure? b)Why does increased volatility in financial markets with respect to the price of financial assets,interest rates,and exchange rates foster financial innovation? c)Why is the holding of a claim on a financial intermediary by an investor considered an indirect investment in another entity? d)Explain how a financial intermediary reduces the cost of contracting and information processing.
- 3. Explain what led to the Great Financial Crisis of 2007 and why the government felt it had to ‘bail out the bankers’.(c) Discuss how the “lemons problem” keep securities market from being effective in channelling funds between lenders and borrowers.Question 1 Briefly explain how the adverse selection problem can affect the financial markets. Explain how financial intermediaries can help to solve the adverse selection problem in stock and bond investments
- Please discuss the following. 1. Financial markets are institutions and systems that facilitate transactions in all types of financial claims. 2. What is the importance of financial markets in a nation's economy? Discuss fully.Please, I need help with number 1, 2, 3, 4 1. Assume that there are two assets in the world, stocks and bonds. If both sell at the same price, and if stocks are twice as risky as bonds, we should expect that the a. Stocks will not sell. b. Rate of return on stocks will be twice the rate of return on bonds c. Rate of return on bonds will be twice the rate of return on stocks d. Rate of return on bonds will be higher than stocks, by an indeterminate amount 2. Which of the following describes the relationship between stock and bond prices and interest rates? a. There is a direct and positive relationship between the rate of interest and stock and bond prices. (As interest go up, stock and bond prices rise as well.) b. The relationship is far too difficult to quantify. c. There is an inverse relationship between interest rates and the price of a stock or a bond. (As interest rates go up, stock and bond prices decline.) d. It varies with the performance of the stock or bond market. 3.…What are globally important financial institutions? List the main ones and explain when they first came to prominence and why. Are they still relevant? Explain in your own words. in 3000 words plz