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- Which of the following are suppliers of loanable funds? households government units foreign investors All of these choices are correct Which of the following do foreign suppliers of funds in the U.S. financial market assess? interest rates offered on financial securities their total wealth foreign investors All of these choices are correct.c. Explain the rationale both from theoretical and practical perspective of why MNCs may invest or divest funds in a financial market outside its own country. Support your argument with an appropriate example.FINANCE > CAPITAL MARKETS What is fiat standard or fiat money? Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country?
- Which of these institutions are not major investors in U.S. equities? Version 1 7 A) Mutual funds B) Banks C) Pension funds D) Hedge fundsHow might thetreasurer of a multinational firm use the interest rate parity concept (a) when deciding howto invest the firm’s surplus cash and (b) whendeciding where to borrow funds on a short-termbasis?Which of the following is a matured money market instrument widely used in the USA, Europe and Asia where both cash and securities are the motivators? a. Commercial Papers b. Treasury Bills c. Repurchase Agreements d. Certificate of Deposits
- For each of the following monetary policy tools:A. The BSP buys securities in the open market.B. The BSP sells foreign exchange currentC. The BSP increases the reserve requirement ratio.D. The BSP applies its moral suasion ability requesting commercial banks to lowerdown interest rates.E. The government decided to deposit funds at the BSP.1. Determine whether the monetary tool imposed by the BSP is an expansionary or acontractionary policy.Which of the following is a function of the primary capital market a. To allow the Foreign Institutional Investors (FIls) to invest in the Indian capital markets b. To allow the companies to raise funds to meet their short term funds requirements through new securities O c. To provide a market for trading with the outstanding long term securities O d. To provide a market for trading with the existing short term securitiesWhich of the following is a function of the primary capital market a.To allow the Foreign Institutional Investors (Fils) to invest in the Indian capital markets b To allow the companies to raise funds to meet their short term funds requirements through new securities c. To provide a market for trading with the outstanding long term securities d. To provide a market for trading with the existing short term securities
- Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…FINANCE> CAPITAL MARKETS 1. What are the 2 classification of monetary standards and explain each. 2. Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country? 3. What are the types of liability. Explain each and give example.2) explain the differences between the following two fundamental factors of finance in international processes -The international transfer of funds - Transfer prices
