Direct finance occurs when A. savers go directly to borrowers for funds. B. borrowers deposit funds into banks, which then loan these funds to savers. C. savers deposit funds into banks, which then loan these funds to borrowers. D. borrowers go directly to savers for funds. E. bankers get involved with financing.
Q: Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b.…
A: A reserve fund is a special account with a financial institution such as a bank
Q: What are the primary tools, and how are they used by lenders when determining whether they will lend…
A: The five C's of credit is a system used by lenders to gauge the credit worthiness of potential…
Q: Commercial banks play an important role in the financial system and the economy. As a key component…
A: Commercial banks : In simple words, A commercial bank can be understood as the financial institution…
Q: This is the PRIMARY FUNCTION OF COMMERCIAL BANKS TRUST FUNDS SAFE DEPOSIT BOXES EXTEND CREDIT…
A: 1.Trust Fund is an entity that holds property on behalf of someone 2.Safe Deposit Boxes means…
Q: money markets? Would you classify this as a financial market, financial instrument or financial…
A: Explain your understanding of money markets? Trading in extremely short-term debt assets is known…
Q: Which of the following statements about savers, borrowers, financial system and financial…
A: (1) Savers are the group of person who deposited their small amount of money with commercial banks…
Q: You open a deposit with capital. The bank uses most of your money to make a loan to jungle Jim’s…
A: Bank deposits consist of money placed into banking institutions for safekeeping. These deposits are…
Q: Explain how commercial bank mange it balance sheet to maximize its profit without affecting the…
A: Commercial Banks are financial institutions accepting deposits from borrowers and using the deposits…
Q: What is the meaning of “financing” in the financial market a. Advising an organization to raise…
A: Financing plays a key role for firms in the financial market. It is explained in the next step.
Q: If households and businesses lend their surplus cash directly to borrowers, there would be no need…
A: Solution: Financial institution facilitates the flow of funds between the individuals and or the…
Q: Which of the following acts as an intermediary between the savers and investors by mobilising funds…
A: Intermediaries in basic terms refers to a person or group of person or companies that acts as a…
Q: Liabilities of saving institutions include: checkable deposits, NOW accounts, and regular savings…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: Which one of the following choice is not one of the ways to transfer savings to those in needs of…
A: Person to person lending is not a way to tarnsfer savings form those who needs funds.
Q: Financial markets have the basic function of: O a. Assuring that governments need deficit money. O…
A: Financial markets is a marketplace for trading. It is a place where financial instruments are…
Q: which of the following source of finance comes with a line of credit ? a. Credit card b. Mutual Fund…
A: There are various sources of finance
Q: banks sources of funds include all of the following except deposits bank capital borrowings…
A: Every business have two sources of funds. They are : 1. Sources of funds 2. Application…
Q: From a bank's viewpoint, a customer's account in the bank is considered a: a.donation. b.liability.…
A: Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary…
Q: The financial markets facilitate the movement of funds from Select one alternative: O Central banks…
A: A financial market is a place where the financial assets are created, bought, or sold. It can be…
Q: Describe your findings and indicates the maximum amount of bank borrowing that is needed from the…
A: Cash budget is defined as cash inflows as well as outflows estimation of the company over the…
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: Financial intermediation is not confined to bank lending but is also carried out by nonbank firms…
A: Financial intermediation- It is a process of transferring funds from savers to investors or…
Q: Could you explain the relationship between money, credit, and financial institutions
A: Money is the center of the universe. Money is being used to buy and sell goods and services..…
Q: Match the intermediary with the characteristic that best describes its function. I. Provide…
A: Mutual funds: Mutual funds refer to an institution which pools the savings of the investors and…
Q: As a banker, which sources of interest free financing is best for business to raise funds? Elaborate…
A: Certain sections of the business community are not able to avail interest based credit due to…
Q: rately explain a
A: Introduction : In simple words, banks refers to a financial institution which provides funds to the…
Q: All the following are assets for commericial banks exept: A) loans B)cash C)Deposits…
A: A commercial bank is a type of financial organisation that handles all activities linked to…
Q: a. The borrower's history of paying bills. b. The assets a borrower owns and can sell to pay off a…
A: in this you have to match right option to right meaning of option
Q: Illustrate with a diagram the flow of funds from lenders to borrowers in a financial system.…
A: Financial Markets helps government organizations, institutions, and companies to access capital. The…
Q: Cash advances and loans to other parties (other than advances and loans made by financial…
A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…
Q: PRINCIPAL is money paid to you by the bank for letting them use your money. Your answer: O Yes O No
A: A bank is a financial institution made to receive deposits and make loans.
Q: Which of the following is a non-depository financial institution? savings bank commercial bank…
A: Financial market consists of many types of financial institutes. There are two types of financial…
Q: What are the four major categories of assets on a commercial bank’s balance sheet and income…
A: Commercial banks: It is the financial institution that accepts deposits from the public and gives…
Q: When a company borrows money from a bank or sells bonds, it is called
A: When a business organization raises capital through the procurement of loans or by issuing bonds, it…
Q: The financial markets play an important role in channeling funds from savers to borrowers. Which of…
A: Ans.(Option C) Investors deposit funds into interest-bearing accounts which are then loaned to…
Q: XYZ Corporation is engaged in lending funds to small vendors in various public markets. To fund the…
A: The term Quasi bank is used for those institutions which perform functions similar to banks but, are…
Q: The term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only…
A: Loanable funds is that financial term that refers to sum total or aggregate of all sums of money…
Q: Suppose you are working in a bank that encourages customers to save money for their future. Your…
A: Answer: There are various types of account that are opened by bank and the same depend on the size…
Q: 2. For depository institutions, the most pressing demanding for spendable funds generally come from…
A: For depository institutions, the most 18 pressing demanding for spendable funds generally come from…
Q: Examine the role of bank credit in financing of working capital. What are the types of bank credit?
A: In order to conduct the business activity successfully funds are required, these funds are invested…
Q: lec
A: Explanation : In simple words, banks can be understood as the financial institutions that work as a…
Q: Which of the following acts as an intermediary between the savers and investors' by mobilizing funds…
A: Explanation:- The term "financial market" money market is a market where investment funds are…
Q: Lending money for a bank it will be considered as an:
A: The Importance of Character Chief on the rundown is character. doesn't believe you or believe…
Q: Explain the relationship between a payor bank and its customers.
A: Introduction: Payor bank can be defined as a bank which is the drawee of a draft.
Q: Secondary Intermediaries are called as such because they depend heavily on other financial…
A: Answer: TRue
Q: Which of the following is a fund based financial service? O a. Merchant Banking O b. Issue…
A: The question is multiple choice question. Required Choose the Correct Answer.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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 financeDescribe the process by which the financial markets would operate to transfer the funds from savers to the borrower (the student).Which of the following acts as an intermediary between the savers and investors' by mobilizing funds between them? a. Financial Markets b. Households c. Financial Instruments d. Government
- Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b. Overnight borrowing by banks to provide customers short term loans c. Borrowing by banks to meet unexpected rise in customers withdrawal d. Overnight borrowing by banks to meet customers depositWhich 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.GovernmentThe term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only those funds loaned to banks by the public. c. only those funds loaned to banks by the central bank. d. all those funds changing hands between the lenders and borrowers in the financial markets.
- From the figure below, briefly explain the basic flow of funds through the financial system. (Start with the Lenders/Savers).I have questions about whether purchased funds are recorded as an asset or liability on a bank's balance sheet and how this impacts the bank's profitability along with its risk level on a bank's balance sheet. I will be very grateful if you can please explain your answer.Given a financial institution that make money in three ways: interest income, interest income, and investment income, what are some ways a bank can capitalize off of non interest income. Give examples.
- Bank channels funds from individuals with surplus to those desiring funds. Select one:TrueFalseMatch 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, 4Which 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 these