Do it correctly. Explain it also. In order to overcome the differences in the preferences of surplus units and deficitusnits, it may be necessary to consolidate small amounts of funds to satisfy the demandfor large amounts. This is known as:financial innovationleverageretail bankingPooling of funds

Fund refers to the money which should be kept aside for meeting some specific purpose. In this, the…

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International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter1: Multinational Financial Management: An Overview

Section: Chapter Questions

Problem 2ST

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Do it correctly. Explain it also.

In order to overcome the differences in the preferences of surplus units and deficit
usnits, it may be necessary to consolidate small amounts of funds to satisfy the demand
for large amounts. This is known as:
financial innovation
leverage
retail banking
Pooling of funds

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