d) State True or False for each of the following statements (: o Every financial market allows loans to be made. An example of direct financing is if you were to lend money to your neighbour. The New York Stock Exchange is an example of a primary market. o Commercial paper is not traded in the capital market.
Q: 4. When an organization underwrites and distributes new investment securities to helps businesses…
A: Business raises finance from various sources such as equity , bonds loans etc to meet its business…
Q: In the Movie House of Cards, which of the following contributed to th I. Banks lending to…
A: Recession of 2006-2008 one of main event in financial sector which have more impact on whole…
Q: As a potential investor would you prefer to invest in a structured note? Why or why not?
A: Note: Since you have posted multiple independent questions in the same request, we will solve the…
Q: Which of the following actions cannot be used by banks to increase reserves? A. Sell Treasury…
A: Reserves are parts of the income of a corporation that have been set aside to improve the financial…
Q: hich of the following statements regarding the private debt market is FALSE? A) Private debt has…
A: The private debt market is the market in which owned by the owners, households and businessman. Bank…
Q: Which of the following is NOT a business of commercial banking?aSaving/lendingbForeign currency…
A: Commercial bank is a financial body which is responsible for accepting deposits and providing loan.…
Q: Which of the following is not an example of financial institutions? a. HSBC mutual Funds b. Muscat…
A: Financial Institutions help to supply funds from surplus units to deficit units.
Q: Which one of the following is NOT a 'Money Market Instrument'? Select one: a. Certificate of…
A: There are two types of markets are present: 1. Money market. 2. Capital market.
Q: Which one of the followings is NOT a money market financial instrument? A) Treasury Bills OB)…
A: Solution:- Money market financial instruments are those financial instruments whose maturity values…
Q: Which of the following is an arrangement by which one party promises to pay a sum of money to…
A: Q11 Answer Option C - insurance Insurance is an arrangement between 2 parties where one party pays…
Q: Title Every financial market has the following characteristic: Description Function of Financial…
A: Functions of Financial markets:
Q: One of the below does not belong to Commercial Banks Their stocks are only publicly traded It takes…
A: Commercial banks : A commercial bank can be understood as a financial institution that takes public…
Q: 5. When an organization underwrites and distributes new investment securities to helps businesses…
A: The business obtains finance by issuing securities and bonds to meet the objectives of the business
Q: Which of the following is a form of financing consist of short term unsecured promissory note issued…
A: A credit rating is a measurement of a person or business entity's ability to repay a financial…
Q: Which one is not the core functions of investment bank? * a.Selling of securities b.…
A: Investment banks are the financial service provider generally works as an intermediary or broker for…
Q: In making a financing decision, how would a financial manager answers questions like: 1. How…
A: Financial manager (FM) has to make various decisions for the company related to the funds. One of…
Q: Which of the following can be considered as financial institutions in a good financial system? a.…
A: Organisation which provide any type of financial services is considered as financial institutions.
Q: Q2. When offering loans to small firm, the lenders normally will require the company share of the…
A: Collateral is an item or property that an individual or business gives as security for a loan to a…
Q: Discuss how does e-money helps in achieving financial inclusion of the BSP?
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Commercial paper markets are trading a. Municipal bonds b. Private company bonds c.…
A: Commercial papers are short term debt instruments issued by private companies.
Q: explain the meaning of the old Wall Street saying if you engage in financial market activity you…
A: If you engage in financial market trading you either sleep well or you eat well.…
Q: 1) Which of the following statements about the money markets are true? A) Most money market…
A: Money Market is the place where short terns securities are dealt in.
Q: 3. Which of the following statements is most correct? a. Trade credit is provided to a business…
A: A creditor is a legal entity (individual or institution) that gives credit by giving another legal…
Q: 18- which of the statements given below is false? Please select one; a) a financial intermediary…
A: Financial intermediaries help to make deals for their clients. Due to their professional skill set…
Q: 1 Which of the following is least likely to be a financial intermediary? A. Finance companies 8,…
A: Because you have multiple question, we will answer the first question only. For the remaining…
Q: Which of the following statements is CORRECT?
A: Following are not correct statements: B. An example of a primary market transaction would be your…
Q: The London Interbank Offered Rate (LIBOR) is published under the auspices of the British Bankers…
A: LIBOR (London Interbank Offered Rate) is a benchmark interest rate. This is the rate at which big…
Q: Which of the following statements is correct? A. Bitcoins are mainly used as financial…
A: Bitcoin is referred to as the decentralized digital currency, which is without any central bank or…
Q: Which of the following statements correctly describes aspects of simple interest as discussed in…
A: Simple interest is one of the methods used for charging interest on a loan by multiplying the…
Q: 7- which of the statements given below is true? Please select one; a) every financial market allows…
A: Financial market refers to the place where short-term and long-term securities are traded. It can be…
Q: Economic conditions in Fredland have caused the demand for money to increase which has changed the…
A: Bond is a type of security issued by entities and govt organization to its investors whereby the…
Q: 49- which of the following source of finance relates to suppliers ? a. Commercial Paper b. Credit…
A: There are various sources of finance
Q: 1. Distinguish between capital market and money market and give examples of the instruments of these…
A: Honor code: "Hi There, Thanks for posting questions. As per the Q&A guidelines, we only answer…
Q: Which below is not one of the factors determining the mix of banks loan? * a. Market size…
A: Factors determining the mix of bank loan portfolio: Bank size Customer size characteristics of the…
Q: Which of the following statements is (are) true? (i) Bank certificates of deposits are capital…
A: Financial instruments: Financial instruments are agreements for the use of money that can be bought,…
Q: Equity is a form of funding that is normally given by banks or other lending institutions. O True O…
A: Equity is form of financing where company raises funds from general public by issuing shares…
Q: Which of the following are issued by large commercial banks that can be bought and sold among…
A: Money market refers to trading in a very short term debt instrument, it consist for many debt…
Q: discuss the main problems sole trader's encounter in a bid to raise finance on kenya’s financial…
A: A sole trader, also known as a sole proprietorship, is a simple business structure in which one…
Q: Which of the following can be categorized as Short term sources of finance? i Equity Shares ii.…
A: Source of finance can be both short term and long term
Q: Which of the following is not a Money Market Instruments? a. Corporate Bonds b. Bankers’ Acceptance…
A: Answer shares and bonds having maturity of more than one year are not considered as money market…
Q: An open market operation is an instrument of monetary policy which involves buying or selling of…
A: Government always uses different techniques to control inflation and one technique is called open…
Q: This is a financial security being facilitated by banks instead of tablished market like the…
A: The stock exchange market is an important part of the stock market. It allows the exchange of…
Q: Which of the following statements best describes financial markets? Answer a. Financial markets are…
A: A financial market is a market in which people exchange financial securities, derivatives, stocks…
Q: Which of the following statements is/are true? i. Borrowing from financial intermediaries is a very…
A: The question is based on the concept of the source of finance and different methods of fundraising.…
Step by step
Solved in 2 steps
- What are some of the ways that banks can borrow short-term funds when they need "liquidity"?(Select all that apply; three of the answers below are correct.) Reference: Chapters 11 & 12 They can borrow directly from the Securities & Exchange Commission through the "regulatory" market. They can borrow from the Department of Treasury through the "Treasury" window. They can borrow another bank's reserves through the "fed funds" market. The can engage in a "sale & repurchase agreement" (or "repo") by selling some of their securities to another financial insitution and promising to buy them back the next day. They can borrow directly from the Federal Reserve through the "discount window".27.Which of the following statements are true?Statement I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity. Statement II. Financial institutions manage their liquidity by participating in money markets. They may issue money market securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.Statement III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.Statement IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The…Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…
- 1. How has deregulation of the financial services industry affected the makeup offinancial intermediaries? How do you think intermediaries’ characteristics willchange in the future? 2. How do banking organizations in the United States differ from banking organizationsin other countries? Why are they different? 3. How is money created in a banking system that has fractional reserve requirements(i.e., a fractional reserve system)? 4. Describe the open market operations undertaken by the Federal Reserve. Whattype of trades would the Fed make if it wanted to increase interest rates? 5. How would funds—that is, the money supply—in the United States be affectedif the Federal Reserve increases reserve requirements? Give an example.1. Which of the following is not a way in which banks lend short-term unsecured loans? Choices: By sending the amount earned from trust and investment products offered by the bank Through a guaranteed credit line that has a commitment fee for any unused amount for the year Through credits cards lines with a certain credit limit By lending a single date maturity loan to a debtor 2. The following are methods of acquiring funds through long-term financing, except Choices: Issuing bonds with semi-annual coupon payment at a discounted price Selling equity securities at an amount above the par value indicated in the stock certificate Issuing a note that indicates a promise to pay the indicated supplier in a future date Selling equity securities with a characteristic of both debt and equity security 3. Which is false about long-term sources of a firm's capital? Choices: Preferred shares are securities whose intrinsic value is based on prospective earnings All types of…Assess the regulatory environment faced by brokerages and investment banking firms. Do you consider this environment to be highly regulated, moderately regulated or unregulated. Justify your response.Compare and contrast credit risk with liquidity risk.Describe the size, structure and composition of the mutual fund industry. Do you consider these characteristics as having a positive or negative impact on investors ? Why ?An investment bank pays $ 23.00 for 4 million shares of JC Co., and then resells them for $ 25 per share. How much money does JC receive? What is the profit to the investment bank ?An investment bank pays $ 20.50 per share for 3 million shares of X. It then sells these shares to the public for $ 22.50 per share. How much money does X receive ? What is the profit to the investment bank ? What is the stock price of X ?A mutual fund owns 500 shares of X currently trading at $ 12, and 300 shares of Y, currently trading at $ 24. The fund has 900 shares outstanding.What is…
- A non-bank private agent sells a £1000 bond in an open market purchase by the Central Bank. If the proceeds are held in ________, the open market transaction has no effect on reserves; if the proceeds are held as ________, reserves increase by £1000. A) a box in the house; deposits B) deposits; savings account C) deposits; currency D) a box in the house; currency Support your answer using T-account examples.Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open Ended vs Closed Ended Mutual Funds C) Moral Hazard and Adverse selection Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance? Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons. Q4: What value do mutual funds add for individual investors and how? Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis. Q6: Last year Fauji Fertilizer Company Limited (FFCI) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%? Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of…1. How would you define corporatebonds? Explain in your own wordswhat Bonds issued at Par, at aDiscount, and at a Premium are.2. How would you explain thedifference between bank loans andissuing corporate bonds? In youropinion, which of the fundingmethods is more attractive to acompany?
- 1 True or False: The London Interbank Offered Rate (LIBOR) is published under the auspices of the British Bankers Association. A panel of 16 major multinational banks self-report their actual borrowing rate. The answer is FALSE. Please explain why.Which of the following statements correctly describes the nature of direct financing as discussed in lectures? Group of answer choices A. More than one of the other answers is correct B. It is the source of financing whenever an investor purchases shares that are listed on the Australian Securities Exchange. C. None of the other answers is correct D. May involve an individual investor buying shares in a company when a company goes public via an initial public offering. E. It relies upon an intermediary to facilitate the flow of funds from surplus to deficit units, unlike indirect financing I answered D, is it correct?The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Please provide a detail explanation for each Explain how to secure the bonds with owned assets in great detail. In what ways does it make the bonds more attractive to allow the company to borrow? What is the agreement to subordinate future debt? How does it make the bonds more attractive?
