Is selling bonds on the capital market indirect or direct financing? Is taking out a loan a indirect or direct financing? Is investing in a mutual fund indirect or direct financing? Is selling stock on the stock market indirect or direct financing?

Q: What is NOT considered as a disadvantage of investing in corporate bonds?    can be defaulted on…

A: The corporate bonds are issued to raise fund. Such bonds are considered fixed income securities.

Q: What is the relationship between risk and return in finance? Why does this relationship hold in the…

A: A return refers to the additional net revenue received from the investment. Risk refers to the…

Q: Describe the difference between financial markets and financial intermediaries? How can your funds…

A: Monetary business sectors and Financial go-betweens are two channels through which the monetary…

Q: Deliberate specifally how and through which channelss the interest rate affects (negatively or…

A: Interest rates can impact the economic activities in different ways. When the interest rates are…

Q: Economic instability , fraud, investor uncertainty , corporate collapse , transparency and…

A: Economic Instability:- An economy is defined as the resources and wealth of a country or nation as…

Q: Some people think that financialmarket transactions should be taxed. What are the arguments for and…

A: A financial transaction is a contract between a buyer and a seller to exchange goods, services, or…

Q: What is the difference between shares of stocks from mutual funds?

A: A stock in a market is called equity and it is described as security that depicts the possession of…

Q: 3. Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock…

A: * SOLUTION :-

Q: How important is CFO in a rural bank? What he can do that others cannot?

A: As a top executive, the chief financial officer is in charge of a company's financial operations.…

Q: what is undervalued and overvalued shares? Explain why investor buy undervalued shares and sell over…

A: An investor may take up various investment decisions in order to generate income. This is because…

Q: Investors must go for investments that are liquid to ensure availability of funds when needed.  Is…

A: Liquidity is defined as the ability to exchange assets for cash. The more easier it is to convert an…

Q: When the safe investments that pension funds usually rely on are paying less than 1 percent, then…

A: Pension funds are those funds that need to kept aside by the employer to be able to be given at the…

Q: How has the COVID-19 pandemic affected the operations/performance of specific financial…

A: Coronavirus has brought the world into a state of crisis. The economy loses its equality and cannot…

Q: What are some examples of financial assets? Rank these examples in order of their risk.

A: A financial asset refers to the liquid assets that get their value from a contractual right or…

Q: Why is it hard to forecast future movements in stock prices?

A: Stock prices: The stock prices are the current prices that a share of a stock is trading in the…

Q: financial market

A: The safety of the asset depends on few characteristics. These will decide weather the asset is safe…

Q: II. Read each statement carefully. Identify the following whether it box. BOND STOCK If a company…

A: In an economy, stocks can be defined as a thing that gives individuals ownership in a  firm or…

Q: ancial institutio

A: At the large financial institutions,compensation practices were considered to be a key contributing…

Q: From a firms point of view how is bond similar to a bank loan how are they different

A: Bonds are a form of debt protection. It is a method for a business to collect funds by selling what…

Q: Why is it important for people who own stocks and bonds to diversify their holdings? What type of…

A: System that permits exchange of funds between the borrowers, investors and lenders via the medium of…

Q: Question: Explain, using examples, the importance of financial intermediation to the flow of funds…

A: An economic system is a network that establishes economic relationships among individuals in…

Q: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed…

A: Financial economics deals with the financial markets, their operations and functions, and the…

Q: How economy plays a vital role in controlling stock prices.

A: A stock market, also known as an equity market or a share market, is a gathering of buyers and…

Q: purpose and contents of "Financial Markets" is : Group of answer choices   about what a basic…

A: A financial market refers to the form of market in which people trade financial assets and…

Q: financial markets that function well: a. increase the ease of converting common stocks into bonds…

A: A well functioning financial markets has following features:- Reduce riskiness of the most assets…

Q: If junk bonds are called "Junk" Why then would as an investor buy Junk bonds?   Explain your reasons…

A: Junk bonds are bonds which carry a higher default risk than most corporate and government issued…

Q: There’s no penalty for withdrawing funds from investments before they mature. True or false

A: When a depositor withdraws funds or closes out a time deposit before the maturity date, an early…

Q: If you suspect that a company will go bankrupt nextyear, which would you rather hold, bonds issued…

A: The firm's capital structure will include a share of debt and equity. The level of debt and equity…

Q: Explain the functions of financial markets with the help of a structured diagram.

A: Working of Financial Market The activity of lending and borrowings occurs in the Financial/Monetary…

Q: Explain why repurchase agreements (repo) and securities are used as a lending practice  in capital…

A: For government securities dealers, a repurchase agreement is a type of short-term financing. When a…

Q: If a corporation decides to issue their shares of stocks to the public for the first time, which of…

A: Shares refer to the ownership of the company. If a company buys shares of a particular company then…

Q: An indexed fund is -- a combination of stocks and bonds that mirrors only the gains of the stock…

A: An indexed fund is a combination of both the stocks and bonds that are made to mimic the composition…

Q: Which of these is NOT a financial intermediary in the market for loanable funds? credit unions O an…

A: Answer to the questions are as follows :

Q: What type of open market operation is expansionary? (Is it a purchase or sale of bonds?)

A: Open market operations refer to purchase and sale of bonds

Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…

A: Interest rates affect the profitability of financial institutions. The financial institutions…

Q: Bankers have a reputation for conservatism in politics, dress, and business affairs. Is there an…

A: Yes it is rational. Th checking deposit that provided by the bank is the best example of the fiat…

Q: V = D + E   Value of Asset = Debt + Net Worth   According to normal economic theory, when will…

A: Given: V = D + E

Q: Carly wants to buy and operate an ice-cream truckbut doesn’t have the financial resources to start…

A: Stocks and bonds are the financial market instruments used by people in the economy, which is used…

Q: EXPLAIN YOUR UNDERSTINDING OF EQUITY INSTRUMENTS AND IDENTIFY THE MARKETS WHERE EQUITY INSTRUMENTS…

A: Financial markets are those market place where security are  traded. There are two types of…

Q: "Alternative forms of Financial Inflow". Present the topic objectively

A: The "capital flows" of an investment, trade, or company transaction are the transfers of funds.…