Read the following premise carefully and answer the questions specifically and in detail. You must answer the request with the correct information, showing that you understand and can properly apply the concepts. Try to address all the elements of each question and always express the answers in your own words. "Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those with a surplus versus those with a deficit creating a market for capital injection."

Q: In which economic conditions would a central bankwant to use a “forward-guidance” strategy? Based…

A: Forward guidance refers to the communication from the central bank regarding the prevailing state of…

Q: The following shows the balance sheet for a bank. The manager wants to get an idea about the…

A: The technique used by the banking sector to assess the interest rate risk and the liquidity risk of…

Q: The role of the information is important for Your answer: O financial institutions because they…

A: Financial institutions are institutions give money to borrowers So it is necessary for them to…

Q: Market participants, including financial institutions, fund managers and corporations, must…

A: Monetary policy is a collection of measures that a country's central bank can use to encourage…

Q: Which of the following statements is true with regard to financial markets O a. They link the…

A: The stock market is the market under which the company is considering raising capital, arrangement…

Q: Finance professionals make decisions that fall into three distinctive areas: corporate finance,…

A: The classifications of decisions according to the area of finance:

Q: ROA and ROE are considered as ther performance evaluation tools for banks. Do they always move in…

A: ROA is defined as the (return on assets) it helps to determine the profitability of the company It…

Q: Which of the following is true of financial institutions? A. Financial institutions are the…

A: A financial institution (FI) is a business that deals with financial and monetary transactions like…

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: Which one of the following statements is wrong about finance? Select one: O a. The financial…

A: The financial market and finance industry are set in place to help facilitation between the holders…

Q: a. “A robust financial market is one of the pillars of stable economic growth and secured financial…

A: Financial market is a place that helps in transferring the money from those who have surplus funds…

Q: do you think that the collaboration between Central Banks and Government creates challenges for…

A: If a country's economy were a human body, the central bank would be its heart. And, just as the…

Q: Having researched derivatives for investment portfolios, is there a need for them as hedging…

A: Derivatives as hedging vehicles: Derivatives are nothing but the financial instruments in which two…

Q: Are there any novel ways by which some of the challenges in the financial system may be resolved in…

A: A proper risk management will help a company to solve its challenges in financial system. The steps…

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: Which of the following statement is required for maintaining Inter-relation with other departments…

A: Financial managers have the responsibility of overseeing the finances

Q: Discuss with examples about financial innovations

A: Finance Innovation:- Financial innovation is that the method of making new merchandise, services, or…

Q: The role of the financial system is crucial and significant to the economy. There are several…

A: Central banks- It is the most important institution of a country that manages the flow of money in…

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: Suppose the population of Area Y is relatively young, and the population of Area O is relativelyold,…

A: a) Area Y consists of a comparatively young population and will thus save low and have a large…

Q: ROA and ROE are considered as the performance evaluation tools for banks. Do they always move in the…

A: Return on equity (ROE) and return on assets (ROA) are two of the most critical metrics to determine…

Q: Which statement is not correct?      A. The primary function of the financial system is to…

A: financial system is a the system that allows exchange of funds between financial market and lenders,…

Q: investment center

A: A distinguishing characteristic of an investment center is that B. interest revenue is the major…

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

A: Financial intermediaries are very important for any economy because they provide funds to those who…

Q: How do you think financial institutions help financial market to work?

A: fInancial institutions -The firms and organizations involved in the collection and distribution of…

Q: Financial markets and intermediaries provide financing for business. They channel savings to real…

A: Financial markets are the markets wherein buying and selling of financial securities is done.…

Q: Explain why the same company can be a saver and a user of funds

A: Note : As per our guidelines, we can only answer one question at once. Please post other questions…

Q: Identify which one of the following statement is correct? a. Banks are basically financial…

A: In the given case Option C is correct... Banks are basically financial intermediaries between the…

Q: financial intermediaries (institutions)? *

A: Financial Intermediaries: Financial intermediaries act as a middleman between the investors and the…

Q: Secondary Intermediaries are called as such because they depend heavily on other financial…

A: Answer: TRue

Q: a) One of the biggest problems for any economy is to figure out how to get or transfer money from…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Understanding the impact of debt in the capital structure Suppose you are conducting a workshop on…

A: From the given list we have to identify the items which are correct are as follows: 1) An increase…

Q: Explain the following concepts in relation to the role that banks play in financial markets: i)…

A: A bank is a financial institution that serves as a mediator between surplus units and deficit units,…

Q: Which of the following statements is/are true? i. Borrowing from financial intermediaries is a very…

A: The question is based on the concept of the source of finance and different methods of fundraising.…

Q: Discuss the following: 1. Financial markets are institutions and systems that facilitate…

A: In this question we will be discussing the following questions : 1. Financials Markets are…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.