An increase in interest rates would mostly harm the ___. 1. creditors
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An increase in interest rates would mostly harm the ___.
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- 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 theseWhich of coming up next isn't a money outpouring? a) Increase in Prepaid costs b) Increase in debt holders c) Increase in stock d) Increase in lenders(1) How does getting a secured loan using accounts receivable as collateral differ from factoring? (2) Why would lenders want to see that a business already has some level of capitalization before giving it access to more capital by means of a loan?
- 1. Which of the following is not a reason for the issuance of long-term liabilities? a. Debt financing offers an income tax advantage.b. Ownership interest is diluted.c. Debt may be the only available source of funds.d. Debt financing may have a lower cost.Based on your understanding of the fAactors that affect the cost of money, Identify which of the following statement is true. a. higher inflation leads to lower interest rates. b. Interest is the price paid to borrow funds. c. Higher risk leads to lower interest rates.Banks use gap analysis to measure interest rate risk in their balance sheets. If firm XYZ is said to have a positive gap, this means: Group of answer choices C. Rate-sensitive assets exceed rate-sensitive liabilities B. Long-term assets are funded with short-term liabilities D. Rate-sensitive assets equal rate-sensitive liabilities A. Liabilities reprice before assets
- A. Briefly explain the problem of moral hazard in: (i) Equity financing (ii) Debt financingB. What is the adverse selection problem in financial markets and how can it be solved?Which of the following statements is most correct? a. When actual inflation exceeds expected inflation, debtors gain at the expense of creditors because they repay their loans with depreciated currency. b. When expected inflation exceeds actual inflation, debtors gain at the expense of creditors because they repay their loans with depreciated currency. c. When actual inflation exceeds expected inflation, creditors gain at the expense of debtors because they repay their loans with devalued currency. d. When actual inflation exceeds expected inflation, debtors and creditors both lose because they repay their loans with depreciated currency.Financial markets promote economic efficiency by *A.channeling funds from investors to savers.B. creating inflation.C.causing recessions.D. channeling funds from savers to investors.
- Why is it important to check if debt is decreasing if we have decline in interest expense in financial statement?........ is a link between savers & borrowers, helps to establish a link between savers & investors Select one: a . Money market b . Marketing c. None d . Financial market e . None of theseHow can the financial markets provide liquidity for savers who hold financial instruments but are in need of money? Give a simple example.