In a less-developed financial system, which one of the following statements hold good? Institutional investors play an important role in capital formation Investment Bankers play an important role in capital formation Savings are converted into productive assets in a short period of time Cost of capital is expected to low
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In a less-developed financial system, which one of the following statements hold good?
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- A well-functioning financial system does all of these EXCEPT: a. foster economic growth by directing savings to its most productive use. b. allocate risk among market participants. c. eliminate systematic risk through diversification. d. direct resources from savers to borrowers.The presence of a well developed financial market and a wide array of financial instruments is beneficial to the overall economy since the flow of funds would be greater. * True or False?One of these four answers increases the demand for financial capital. Which one? Group of answer choices Government reduces borrowing. Consumer confidence in the economy falls. Business confidence in future performance increases. The economy is expected to go into a recession.
- Which of the below statements is false for frictionless financial markets? A.No transactions costs B.No corporate and personal taxes C.No agency costs between shareholders and debtholders D.Information asymmetry between managers and investorsWhich of the following is not a key dimension of financialization? Private equity Profits via the global sale of goods and services Public sector budget austerity Share price maximizationWhich one of the following is NOT a unique characteristic of financial data? Select one: a. The measurement error and revisions problems in financial data are far less serious. b. Financial data are almost always normally distributed. c. Financial data are observed at much higher frequencies than macroeconomic data. d. Financial data are often considered very ‘noisy’
- Read the following premise carefully and answer the questions specifically and in detail: "Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those who have a surplus versus those who have a deficit creating a capital injection market." Using the concepts of real interest rate and expected rate of return, he contrasts the relationship between savings and capital investment. Using the macroeconomic theory presented in the module content, he explains the relationship of the financial market with the economic growth of a country. Explain the dynamics that are expected to occur between different development policies in the injection of capital as instruments to promote growth, sustainability and economic stability of a country.Capital formation is said to be facilitated by financial intermediation. Describe the way in which this process takes place and illustrate it with an example.It analyzes the responsibility of the financial system in the demand for investment versus the supply of savings.
- What is a financial bubble in the context of asset markets? A. A situation where asset prices are stable and reflect intrinsic value B. A sudden and unsustainable increase in asset prices followed by a crash C. A government policy to regulate asset markets D. A situation where asset prices are controlled by a single entitythis is a conceptual question, please provide briefs notes Examine the Structural differences in financial markets and institutions in developing and developed economy. Identify national institutions such as central banks that contributes to the development of financial markets. Evaluate why financial systems in developing economies are inadequate.Which of the following was an underlying cause of the economic crisis of 2008? a. The imposition of government regulations on Fannie Mae, Freddie Mac, and other lending institutions that eroded the conventional lending standards in place prior to the mid-1990s b. A failure of government to impose regulations on Fannie Mae, Freddie Mac, and other mortgage lenders c. Federal housing regulations that made it difficult for Fannie Mae, Freddie Mac, and other lending institutions to obtain sufficient loanable funds for the finance housing construction