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The demanders of funds participate in the financial market to earn profit. *
True or False??
Individuals and businesses who save money and make financial investments are the suppliers of funds in financial markets. Those who borrow money are the demanders of the financial market.
Step by step
Solved in 2 steps
- What is the relationship between risk and return in finance? Why does this relationship hold in the financial markets?All the participants in the financial system can be both demanders and suppliers of funds.A. the statement is incorrectB. the statement is correct because the individuals, government and business can be suppliers of funds.C. the statement is false because only the individuals supply fundsD. the statement is correct but only the government can be a demander of fundsE. all the above choices are correctOne of the tasks of a Financial System include providing affordable loans to all consumers and firms.True or False
- What happens to interest rates in the market if the stock brokerage commission declines? Explain the reason for your answer!Market interest rates are established by the banks or any financial institutions. True or false?True or False? Adam Smith believed that his concept of an “invisible hand” guiding human behavior applied to both goods markets and to financial markets. True or False ? Ben Bernanke believes that Milton Friedman and Anna Schwartz’s explanation of the causes of the Great Depression were silly and wrong.
