How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’ access to capital?

Q: What are the investment characteristics peculiar to real estate that make it riskier than investing…

A: Safety Bonds are comparatively safe as if the more the bonds are safer, lesser will be the interest…

Q: Is it financial expediency for firms to borrow?

A: The acquisition of debt funds by businesses is far more convenient than any form of funds and far…

Q: How is investment banking different from retail and corporate banking? Explain in a flowchart.

A: Retail Banking is the type of Banking which provides banking services or financial services to the…

Q: What is the role of investment banks and how can they help companies raise capital?

A: Solution-   Investment banks are a bridge between investors and also the massive enterprises. The…

Q: Explain what the "Avoids" are when developing Key Risk Indicators for commercial banks.?

A: The key risk indicators are the quantitative measures that are used by commercial banks to evaluate…

Q: What is the link between securitization and the economic function of financial intermediaries? What…

A: Introduction: Securitization combines diverse financial assets into a single instrument that is then…

Q: How do financial intermediaries help small investors access the market?

A: Financial Intermediaries: When two parties in a financial transaction engage in business with each…

Q: Why does the Businesses go to the capital markets?

A: Capital markets are a place where the process of channelization of savings and investments takes…

Q: Why is corporate finance important to stakeholders?

A: Corporate finance generally deals with the sources of funding i.e the entity's capital structure. It…

Q: What allows financial institutions to generate a profit? What are the conditions under which their…

A: THE INTRODUCTION: The marketplaces where financial assets and instruments are traded and the sites…

Q: What rate do investors use to discount the capital gains and cash flows of firms?

A: Discounted cash flow estimates the present value of an asset by using projected cash flows.…

Q: How relevant is capital to the operations of universal banks

A: Banks refer to the financial institution that is licensed to receive deposits and lend out loans.…

Q: What is Competitiveness and how it affects financial market. Identify the risks that may arise.

A: The search for long-term competitive advantage is an important part of all business activity – one…

Q: How banks can improve their return on equity and what are its negative externalities.

A: RoE is ubiquitous in banks, serving as both an indicator of overall performance and a means of…

Q: What are the ways in which a bank can increase its capital adequacy ratio?

A: Capital Adequacy Ratio or CAR is referred as the measure through the capital for the bank that are…

Q: What are the roles of venture capitalists and business angel in entreprenurial finance?

A: A venture capitalist (VC) is an investor who lends funding to new firms in return for stock.New…

Q: Which of the following statements describes the cost of capital?…

A: Cost of Capital refers to that rate of return that a firm expects to earn from its investments for…

Q: ring and explain its advantages and disadvantages. Why might a bank be interested in a company’s…

A: Gearing : In simple words, gearing refers to the ratio of the company debt to equity. It depicts how…

Q: How does extence of rivalry among competitors in the banking sector affect the investment industry…

A: The global financial crisis rekindled policymakers' and academics' interest in bank competition and…

Q: Distinguish between illiquidity and insolvency for banks and discuss the role of capital in…

A: liquidity is considered as the short-term problem of banks where they are unable to make payments…

Q: Financial markets: efficient and other.  How are financial firms able to make profits? Under what…

A: Introduction: Usually, financial institutions such as banks and insurance providers raise and pool…

Q: What are pros and cons of raising money with debt? What is an alternative and why might some…

A: When a corporation generates funds by issuing debt instruments, this is known as debt financing.…

Q: anks assess the risk appetite of each customers in terms of investment.

A: Step 1 "The aggregate degree and risk categories the financial institution is willing to embrace…

Q: How do banks assess the risk appetite of each customers in terms of choosing the right  investment

A: Investments of banks are in the form of loans they have provided. Before giving loan to any customer…

Q: how do banks improve asset utilisation to increase Return on Equity and what are the risk…

A: Banks are the financial institutions which deposit money from customers at lower interest rates and…

Q: Explain why a capital market is needed when the banking system stagnates in financial markets?

A: Capital market is a market for equity shares and long-term debt. It describes any exchange…

Q: What roles are played by an investment bank and its brokeragefirm during an IPO?

A: Investment banks provide various types of services to its clients like underwriting services,…

Q: What are some investment banking activities?

A: Investment banking is a branch of banking services which provides financial services to individual…

Q: Explain the use of Economic Capital in measuring risk among financial institutions and its…

A: Economic capital measure risk in terms of capital. It is necessarily the capital amount that a…

Q: What are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: Finance

A: Introduction: Commercial banks are banks where majority of the people both individuals &…

Q: How does the firm’s internal condition affect its actual capital structure?

A: The capital structure is the structure of mix of debt and equity which shows how a company has…

Q: If youre a financial managers, what do you think is the importance of a proper capital structure.?…

A: Capital structure: Capital structure of an organization means the way in which the funds of a…

Q: What are the risk implications/shortcomings of financial institutions in increasing their financial…

A: Financial leverage is defined as the use of the debt for acquiring an additional assets. Usage of…

Q: What are the advantages and disadvantages of using financial leverage? Answer from the banker’s…

A: Financial leverage is a firm’s capability of borrowing so that the funds raised could be used to…

Q: What are the major economic functions of the interest rate? How might the fact that many businesses…

A: Interest is the price paid by the borrower for using the money borrowed from the lender.

Q: What is the impact of capital controls that restrict mobility of capital across nationalborders on…

A: Capital controls are the controls that are implemented on the international movement of capital.…

Q: In order to earn money, how do financial institutions do it? What conditions restrict their ability…

A: Introduction: Financial markets are the exchanges on which financial assets and instruments are…