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- i need Question no 6 Solution Just please urgently 1) Suppose the central bank decides to lend $2million to a particular bank (Kangaroo Bank) on the condition that Kangaroo Bank must make an additional $2million loan to one of its customers. Show the effect this has on the balance sheets of the central bank and Kangaroo Bank. If the customer uses those funds to buy a house from a person who banks with Koala Bank, show the effects this will have on the balance sheets of Kangaroo and Koala Bank. Suppose that, as a result of increased use of electronic payments, banks no longer need to hold as much vault cash. Banks decide to reduce their vault cash holdings by $250million. Show the effects this would have on the balance sheets of commercial banks and the central bank. If, at the same time, depositors decide to reduce their cash holdings by $50million by depositing that amount with their banks, show the combined effect of these decisions on the balance sheets of commercial banks.…q13 In which of the following Institutions, membership is not open to the public and there is membership fee? a. Brokerages b. Insurance Companies c. Credit Union d. Investment Company q14 Finance is defined as: a. Art and finance of managing money b. Commerce and science of managing money c. Art and science of managing money d. All the options are wrongQ: According to UCP600, ( ) has/have the right of resource in case of dishonor A. Issuing bank B. Negotiation bank C. Confirming bank D. Collecting bank
- what is the job of a financial intermediary*? What might happen if they fail to do their job? *as part of your response, you should probably name the different types of financial intermediaries2. In identifying alternative courses of action, one should consider the following, except a. continue the same course of action b. change the same course of action c. expand the current situation d. change the current situation 3. Among the sources of information in financial planning, which is not considered as one? a. media and publications b. investment analyst c. financial institutions d. loan sharksMatch the intermediary with the characteristic that best describes its function.I. Provide protection from adverse eventsII. Pool funds of small savers and invest in either money or capital marketsIII. Provide consumer loans and real estate loans funded by depositsIV. Accumulate and transfer wealth from work period to retirement periodV. Underwrite and trade securities and provide brokerage services1. Thrifts2. Insurers3. Pension funds4. Securities firms and investment banks5. Mutual funds A. 1, 3, 2, 5, 4B. 4, 2, 3, 5, 1C. 2, 5, 1, 3, 4D. 2, 4, 5, 3, 1E. 5, 1, 3, 2, 4
- Which of the following statements is false? A. Moral hazard is the lack of incentive to guard against risk where one is protected from its consequences. B. Information about a bank’s activities and financial performance is available in the bank’s financial statements. C. As long as everyone continues to accept the paper bills in exchange, they will have value and serve as currency. D. To an economist, money is the stock of assets that can be readily used to make transactions.Q1. As Ms. Sara prepares for her trip to London, she reviews a typical bank balance sheet. What types of assets does a bank own, and what types of liabilities fund them? Q2. Explain why financial institutions such as banks are necessary in an economy.Q1. One financial intermediary in our financial structure that helps to reduce the moral hazard arising from the principal-agent problem is the * A) money market mutual fund. B) venture capital firm. C) pawn broker. D) savings and loan association. Q2. Investment banks are guilty of conflict of interest when they [ can select more than 1 answer] * A) pressure their analysts to produce research favorable to their client firms. B) permit executives of client firms to alter analysts' research on their firms. C) prohibit analysts from making negative or controversial comments about client firms. D) allow executives of potential client companies to buy underpriced initial public offerings of other companies' securities.
- Q31) Fahim is a businessman and wants to start a business in another country. What type of bank account should he open to get overdraft facility and cheque facility?The speculative motive is the need to hold cash O a. To pay outstanding checks b. To maintain a firm's daily operations c. To invest in opportunities which may arise Od. To compensate a bank for services renderedP has rendered construction services for M. M is currently illiquid due to the effects of the COVID-19 pandemic. Thus, M issued a negotiable promissory note in favor of P for the amount of his payable to M. P then endorsed it to A, who knows about the transaction between M and P, then A endorsed it to B, who also knows about the said transaction. Can B seek payment fom M? YES OR NO?