Suppose that the city of New York issues bonds to raise money to pay for a new tunnel linking New Jersey and Manhattan. An investor named Susan buys one of the bonds on the same day that the city of New York pays a contractor for completing the first stage of construction. Is Susan making an economic or a financial investment? What about the city of New York?

Q: in the role of commercial banks in an economy?

A: Macroeconomics refers to the economics that deals with the structure, decision-making performance as…

Q: Why would lenders want to see that a business already has some level of capitalization before giving…

A: The banks are the financial institutions who are involved in the process of lending money to the…

Q: Discuss the role of banks as financial institutions that fuel the economic growth of a nation.…

A: Different roles of Financial Institutions in an economy are as follows: Banking/ Insurance…

Q: What does the net investment test indicate?

A: Net investment is the net amount of money a business spends on capital assets, minus the…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: How does the financial system coordinate saving and investment?

A: By using the loanable fund as a tool, the financial system coordinates saving and investment in the…

Q: Which of the following is not a primary participant in the financial marketplace? a.  governments b.…

A: A financial market is a place where stocks, bonds, and money are exchanged.

Q: Is the stock market "out of control?" How can the poor benefit from this financial institution?

A: A company or institution which is involved in the financial activities of the economy like,…

Q: analyzes the responsibility of the financial system in the demand for investment versus the supply…

A: The financial system's primary economic role is to transfer cash from net savers (those who spend…

Q: What are the keyword that contrast savings and investment?

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: What is the Investment-Pool Concept?

A: The income of the individuals, and households is used for various purposes. The income taxes are…

Q: Why might an investor prefer to invest indirectly rather than directly?

A: Direct or indirect investment both leads to pay offs, it depends on the investor about what is…

Q: What is the financial market, what does it do in terms of saving investment and interest rates

A: A market is a place where the exchange of goods and services takes place between the consumers and…

Q: explain the roles financial market play in the development of the economy of Ghana

A: Including bonds, equity, and derivatives, the Ghanian financial market saw its best performance…

Q: Discuss five ways which the country can do to increase its savings rate.

A: The savings is defined as the amount of income that is not paid in taxes to the government or not…

Q: How does the flow of funds help an economy grow and develop?

A: Meaning of Economic Growth: The term economic growth refers to the growth towards the internal…

Q: What do you think accounts for the wide range of savings rates in different countries?

A: Saving rate- It is the ratio between savings of household and (unadjusted) gross disposable income.

Q: Suppose that stock prices were to fall by 10 percent in the stock market. All else equal, would the…

A: The economy's gross domestic product is made of consumer spending, private sector spending, net…

Q: Many countries have policies that limit how much interest a moneylender can charge on a loan. Do…

A: Interest rate is considered as the borrowing cost because the person who is borrowing money has to…

Q: Distinguish between saving and investment.

A: An important debate in macroeconomics relates to the relationship between saving and investment.…

Q: List the main function of investment banks in the financial system?

A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…

Q: individuals may get funding from the capital markets.

A: Capital markets are defined as the market where the trading of shares, debentures, long-term…

Q: A country reduces its government budget deficit and also makes political reforms that lead people to…

A: With the reduction in the government budget deficit, the interest rate would also go down.…

Q: What actions might a stock investor take during times of economic expansion? In other words, how…

A: Economic Expansion: It is a phase of the business cycle in which an economy experiences rapid…

Q: Why is it incorrect/inappropriate to say that governments “invest” the “national savings?”

A: National savings refer to the total savings in an economy i.e by the public as well as private…

Q: What is stock exchange

A: Capital is a very important factor while setting up any business. Capital refers to the amount of…

Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?

A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…

Q: The government, business and household sectors are all suppliers of funds into the financial system.…

A: A financial system is a platform for transactions related to funds between financial market…

Q: Discuss the role of banks as financial institutions that fuel the economic growth of a nation.

A: To shape the economic world and the functioning of it, the banking system of a country plays a major…

Q: What role do commercial banks play in the development of an economy

A: The commercial banks play a vital role in any economy. Developed commercial bank systems ensure and…

Q: Discuss briefly how households, businesses, and the government of an economy are connected through…

A: Financial markets, as the name implies, are a form of marketplace that allows you to sell and buy…

Q: What is importance of financial markets for the productive capacity of the economy?

A: The economies work with the motive of increasing, or enhancing their overall economic growth, and…

Q: Is this statement true or false? Please explain in detail why. Investing in development of people…

A: Concept: Investment in the development of people refers to the creation of human capital. It helps…

Q: True or false: Investors and lenders are the same group of people

A: The concept that depicts the allocation of money with the primary motive of having a benefit from it…

Q: How is physical capital related to financial capital?

A: Physical capital refers to the tangible goods that are produced by the company.  Examples raw…

Q: Explain how financial market mobilizes money and wealth creation opportunity within a country.

A: Financial market mobilizes money through a well developed process and bringing over the smooth…

Q: seven major financial institutions

A: Financial institutions today help the economy to lend, distribute and borrow money for various…

Q: What is the financial system, Name and describe two markets that are part of the financial system in…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: Institutions that help to channel funds from savers to borrowers are known as a) corporations. b)…

A: People do not consume their entire income rather they like to save a part of the income for future…