Answered: Financial innovation provides a new…

Business

Finance

Financial innovation provides a new service and product needed to both investors and borrowers. Select one: True False

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10PA: The board of directors is interested in investing in a new technology. Appropriating existing...

See similar textbooks

Related questions

Q: ........ is a link between savers & borrowers, helps to establish a link between savers & investors…

A: The financial market is the place where the savers and the borrowers meet. The borrowers refer to…

Q: for some statements on how financial managers can create value for their firms. Which of the…

A: Value Creation: A firm (read, corporation) has a distinct legal identity that is separate from its…

Q: Discuss the implications of the efficient market hypothesis for financial managers and security…

A: An efficient market hypothesis is defined as the hypothesis, which used to state that the share…

Q: Read the following premise carefully and answer the questions specifically and in detail. You must…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which of the following statements is incorrect? Select one: A. It is possible for markets to be…

A: According to the efficient market hypothesis, all the information available in the market is…

Q: xplain what is meant by the term ‘financial distress’. If we assume that financial distress exists,…

A: Explain what is meant by the term ‘financial distress’ Answer: Meaning of 'Financial distress' -…

Q: Discuss the three factors that discriminate between successful and unsuccessful new financial…

A: The three factors that discriminate between successful and unsuccessful new financial services are…

Q: A successful entrepreneur may need a support of financial institutions and Non-financial…

A: The non financial institutions are the institutions which provide services similar to banking…

Q: ance.perhaps you have come across behavior or aspect of financial market that you think can be…

A: Introduction : In simple words, behavioral finance refers to the study branch of finance which deals…

Q: Discuss how the free-rider problem aggravates adverse selection and moral hazard problems in…

A: The adverse selection problem in the security market cannot be completely solved by the system of…

Q: Give one example of overconfidence bias in investing and how to overcome it. Thank you!

A: Overconfidence bias can be defined as the overestimation of skills and abilities by an individual.…

Q: “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both…

A: A financial intermediary is a middlemen between a financial transaction. Examples of financial…

Q: Why do most academics and financial executives regard the NPV as being the single best criterion and…

A: NPV is better than IRR and is a single best criterion for capital budgeting decisions because this…

Q: Discuss the three major factors that discriminate between successful and unsuccessful new financial…

A: There are mainly two things through which a company generates revenue i.e. by selling products or…

Q: financial intermediaries play a crucial role in an economic crisis-they are responsible for both…

A: Financial intermediaries: Financial intermediaries are organization which are acts as a link between…

Q: Why does behavioral finance considered investors as "normal" yet biased and errors? Support being…

A: Behavioural Finance is the branch of Behavioural economics which deals with the behaviour and…

Q: Explain the lemons problem and why it is an important concern of investors.

A: Investments are the ways through which investors save their money by investing or keeping funds in…

Q: What does a proper loan structure accomplish for the borrower and the lender? A. Supports…

A: The term "loan structure" describes the range of options available to a lender when giving credit to…

Q: discuss four ethical issues found in the finance industry and responsible investing as a way to…

A: The insider trading, stakeholder interest against stockholder interest, investment management, and…

Q: Financial markets promote economic efficiency by * A.channeling funds from investors to savers. B.…

A: Answer - The financial system performs the essential economic function of channeling the funds…

Q: What is NOT a question that needs to be answered when completing financial due diligence? A. Is…

A: Financial due diligence is an integral part of the merger and acquisition process. It states that…

Q: Arguments against a robust financial market being the foundation of stable economic growth and…

A: As the name implies, financial markets are a type of marketplace where you may sell and purchase…

Q: Discuss the importance of market efficiency, and explain why some markets are more efficient than…

A: Market efficiency is defined as the degree, where the market prices used to get reflected as per the…

Q: (b) "Financial innovation sometimes brings great rewards. It can make the financial system more…

A: RELATION BETWEEN INNOVATION AND MANAGING RISK Innovation is the lifeblood of any company, but…

Q: Financial risk management Which of the following is not a key difference between front office and…

A: Note: As per our guidelines, we'll answer the first question as you have not specifically mentioned…

Q: Do normal valuation metrics work like P/E, P/B etc., in tech companies or do investment bankers…

A: A startup is a firm that is in its early phases of operation. These businesses usually start with…

Q: Which of the following is related to the Time value principles of money and banking? a. Loan…

A: Time value principle of money states that money's worth decreases with time. Money's worth today is…

Q: on which company that gire lower risk to your company. The recommendation must be ustified by the…

A: Financial Ratios It is important to calculate the financial Ratio which can be helpful to assess the…

Q: What informal remedies are available to firmsin financial distress? In answering this…

A: An informal restructuring is typically the "lowest drastic" option for a financially troubled…

Q: Why does behavioral finance considered investors as "normal" yet biased and errors? Support being…

A: Behavioural Finance is the branch of Behavioural economics that deals with the behavior and…

Q: Which of the types of resources needed for ane-business is Storybook.com most likely toreceive from…

A: The question is based on the concept of e-business and support from venture capitalist to run the…

Q: Which of the following statements is most often the case? a0Socially responsible investing gives…

A: The business which are socially responsible succeed in creating faith among the Public. The Public…

Q: A bank that grants loans to firms in a many different lines of business: will increase its…

A: When a bank grants loans to firms in different lines of business then it has to incur more expenses…

Q: Why would an investor want to have some sort of credit enhancement included in a securitization? a.…

A: In finance, securitization is the process of conversion of an asset, most commonly the conversion of…

Q: Which of the statement is TRUE in financial decision making? A. When the economy is growing of…

A: Financial Decision making refers to the decisions made by the managers with regard to the finances…

Q: Financial intermedires play a crucial role in an economic crisis they are responbile for both…

A: Financial intermediaries are the middle person between the financial market and the investors. They…

Q: An advantage financial institutions have over individual household investors is that they are able…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: 3. True/False/Uncertain: "Agency problems are more pronounced for equity crowdfunding than…

A: Equity crowdfunding refers to the method or way for raising the capital which is used through the…

Q: Professional financial planners should

A: Introduction: Financial planners play a responsible role in working closely with individuals &…

Q: Can a financial statement be manipulated? Why yes or why not? Critically discuss and evaluate it…

A: Financial statements manipulation is the manipulation of accounts which are reflected in the…

Q: Customers must be enticed to buy from them by offering a variety of perks and advantages, and they…

A: According to the notion of consumer behavior towards financial products, the issue is posed because…

Q: Explain how you will apply in real life the following AXIOMS of FINANCIAL MANAGEMENT AXIOM 1:…

A: This post has several axioms that need to be elaborated upon. The first three have been attempted…

Q: Which of the following statements is true? Group of answer choices The Principle of Diversification…

A: Diversification is investing our money in different asset classes so that we can minimize risk

Question

Financial innovation provides a new service and product needed to both investors and borrowers.

Select one:
True
False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Financial services providers are looking to segment their markets in the face of greater competition and ever more demanding customers. Would segmentation work for financial services? Show how financial services providers might go about segmenting their markets and implementing selected ?
How do Fintech changes the trajectory of financial market? in terms of providing accessibility and convinience to their customer?
Significance: What is important about this topic area (i.e., Why should the audience care to learn about this topic area?) and to whom are these technologies important? use this question to answer Fintech platforms: finance platforms, opportunities, and risks?
The board of directors is interested in investing in a new technology. Appropriating existing retained earnings is a choice for funding the new technology. You are a consultant to the board. How would you explain this option to the board members so that they could make an educated decision?
Explain the benefits of a return on investment structure within an investment center framework. It may help to think of an example using an existing company.
Which is often the third step in a new business? Multiple Choice Investing Financing Operations
What are the methodologies for analyzing the development and testing of creditworthiness for investment projects of innovative startups?
For a market to be efficient, a market must be large and liquid. Accessibility and cost information must be widely available and released to investors at the same time. In the age of information technology (IT), however, markets all over the world are gaining greater efficiency. What are specific ways that IT has helped to make markets more efficient. As an investor, what information would you be most interested in before making investment decisions?
Which of the types of resources needed for ane-business is Storybook.com most likely toreceive from a venture capitalist?a. Softwareb. Humanc. Financiald. Materiale. Informational
As a financial manager,;one's goalsfor the client is to help them dothe following EXCEPT: A. Build credit by encouraging them to acquire as many loan as possible so that the firm value or the total asset of the firm will increase.B. Identify investment opportunities and determine whether these are acceptable to their risk preference.C. Determine ways to reduce non-value adding costsD. Create budgets that would enable them to determine excess or inadequacy of cash.
Give an example of a green financial product. Explain this product and compare it with the standard financial products of this category. Comment accordingly.
the robust financial market is one the pillar of suitable economic growth and financial sustainability of future discuss