This type of financing involves a syndicate of financial institutions to provide debt financing. SEO Shelf registration Private placement Securitization Syndicated loans Project financing
Q: Please explain what is direct and indirect financing? What is the role of banks in direct c.…
A: Financing is the process of raising funds for the business activities, to meet out payment…
Q: The process of packaging and/or selling mortgages that are then used to back publicly traded debt…
A: financial institutions giving mortgage loans used these mortgages to make secure other debts.
Q: A credit union is an example of: Select one: a.
A: A credit union is an important type of financial institution. It is very much similar to a…
Q: Loans made to closely held firms should have a. collateral b. relationship pricing c. pro-forma…
A: Firm require funds to operate a business. There are many sources to raise funds one of them is loan.…
Q: Which of the following holds deposits, makes loans and provides other financial services to…
A: A financial institution which holds deposits and makes loans plays an essential role in the…
Q: Illustrates cash flow patterns that are important when evaluating mortgagepass-through securities?
A: Mortgage pass-through securitiesSecurity is formed when an individual or number of mortgage holders…
Q: Commercial loan agreements should contain which of the following: a. representations b. fees and…
A: A commercial loan agreement is an agreement between the borrower and the lender. The lender provides…
Q: Explain in detail and with examples why the functioning of mortgage institutions could be considered…
A: Mortgage institutions are the companies that are mainly into the production of mortgage loans, be it…
Q: The primary difference among various kinds of depository institutions is in the composition of…
A: Depository institutions include commercial banks, Credit unions, and other institutions that are…
Q: Mortgage Bankers provide all of the following functions EXCEPT: originate mortgage loans, provide…
A: Mortgage bank used to specialize for lending the funds, which are against the mortgage regarding the…
Q: Who can issue repurchase agreements?
A: Repurchase agreements are also known as a repo loan.
Q: The process by which a loan, or more commonly a group, or pool, of loans, is packaged into a deal…
A: The question is related to Financing.
Q: The ANZ Bank is an example of a:
A: A bank is an institution that provides different banking services and facilities like accepting…
Q: Many types of debt including auto loans, student loans and credit debt are securitized. The…
A: Securitization is the procedure where an issuer designs a marketable financial instruments by…
Q: Which of the following acts as an intermediary between the savers and investors by mobilising funds…
A: Intermediaries in basic terms refers to a person or group of person or companies that acts as a…
Q: y banks to qualified borrowers * investment unsecured loans stand
A: Step 1 Customers can get unsecured loans from various lenders across the country. Several…
Q: 9) Which of the following is used extensively in dealer funding, customer financing and matched-book…
A: There are various financial instruments which are extensively used in money markets such as treasury…
Q: A bank's net interest margin represents the proportion of its investments that are financed with…
A: The difference between interest paid and interest received, adjusted for the entire amount of…
Q: Explain how mortgage-backed securities, collateralised debt obligations and credit default swaps are…
A: Mortgage backed securities: Mortgage is a loan secured by some real estate property or commericial…
Q: When borrowers borrow funds from the financial market through a financial intermediary, it is known…
A: Since there are multiple questions, we will answer only first question. If you want remaining…
Q: Commercial banks are a major source of term loans. These loans are best used for:
A: Commercial banks are financial service providers of small size and mid-size businesses. They provide…
Q: The primary objective of every banking company is: a. To earn maximum profits out of its investments…
A: The primary objective of every banking company is To earn maximum profits out of its borrowing and…
Q: Which of the following can be considered as financial institutions in a good financial system? a.…
A: Organisation which provide any type of financial services is considered as financial institutions.
Q: Bankers Acceptances are generally drawn to raise capital for Financing working capital Financing…
A: Bankers Acceptances - This is the assurance of the bank for the later payments. This document is…
Q: Commercial banks obtain funds to make loans from all the following sources except Multiple…
A: Institutions involved in prime function of getting funds as deposits from public and lending those…
Q: Commercial mortgage backed securities (CMBS) backed by government-sponsored enterprises (GSEs)…
A: A term loan is a form of credit instrument in which money is lent to someone else in exchange for…
Q: Commercial banks grant short-term finance to business firms which is known as __________. a.…
A: Commercial banks are the financial institution which makes loans , accept deposits and offers…
Q: Illustrate the flow of funds between primary investors and ultimate borrowers in a modern economy.…
A: Primary investors are the individuals that provide finances by investing in different sources. The…
Q: When assessing the creditworthiness of new entrepreneurs, lending institutions review the “Five…
A: The five C's of credit are as follows: 1) Capital 2) Capacity 3) Collateral 4) Character 5)…
Q: Which of the following statements are generally true for euromarket loans? They are usually…
A: Euro market is termed as financial market for Euro currencies. Euro currency loans is a major source…
Q: Securitization is the financial practice of pooling various types of contractual debt, such as…
A: Securitization is a process in which a financial institution or any company merges its liquid assets…
Q: Which of the following statements is true of the Loans to Deposit Ratio? a. A high ratio means…
A: Loan to Deposit Ratio: The loan to deposit ratio shows whether the loan has been granted from own…
Q: Which of the following financial instruments generally provides the largest source of short-term…
A: trade credit
Q: The financial markets play an important role in channeling funds from savers to borrowers. Which of…
A: Ans.(Option C) Investors deposit funds into interest-bearing accounts which are then loaned to…
Q: A financial institution that is owned by its members and offers them banking services and ovides…
A: Buildings Society - It Resembles like Credit Union as it is Owned by its members and Also Provide…
Q: Which one of the following is a spontaneous source of financing? Select the correct response:…
A: Spontaneous source of financing is the short term financing needed for business transactions which…
Q: Finance
A: Introduction: Commercial banks are banks where majority of the people both individuals &…
Q: Which of the following acts as an intermediary between the savers and investors' by mobilizing funds…
A: Explanation:- The term "financial market" money market is a market where investment funds are…
Q: This involves assets that were previously thinly traded to be transformed into a standardized…
A: Financial securities are the financial instruments or assets that are traded in the financial…
Q: Which of the following can be categorized as Short term sources of finance? i Equity Shares ii.…
A: Source of finance can be both short term and long term
Q: Secondary Intermediaries are called as such because they depend heavily on other financial…
A: Answer: TRue
Q: a) Falco Inc. is considering a debt issue and is trying to determine the appropriate amount to…
A: Optimal capital structure is a mix of debt and equity which would maximize the value of the company.
Q: All of the following are common loan restrictions except? * restrictions on dividends or…
A: When a company obtain loan, then there are various restrictions that are laid on the company.
This type of financing involves a syndicate of financial institutions to provide debt financing.
-
SEO
-
Shelf registration
-
Private placement
-
Securitization
-
Syndicated loans
-
Project financing
Step by step
Solved in 2 steps
- When borrowers borrow funds from the financial market through a financial intermediary, it is known as : Direct financing Indirect financing Insurance financing 2.Is an example of a financial instrument. Shares Bond All of the aboveCustomer loans are classified on a Depository Institution (DI)'s balance sheet as Select one: A. liabilities, because the customer may default on the loan. B. assets, because the DI earns servicing fees on the loan. C. assets, because the DI's major asset is its client base. D. assets, because DIs originate and monitor loan portfolios. E. liabilities, because the DI must transfer funds to the borrower at the initiation of the loan.. Accounts receivable financing is the term used to describe which of the following types of loans that involve either the assignment or the factoring of a firm's accounts receivable? A. Secured short-term loan B. Unsecured short-term loan C. Secured long-term loan D. Unsecured long-term loan E. Trust receipt loan
- Credit Analysis and Lending Management Question: Securitization is the financial practice of pooling various types of contractualdebt, such as residential mortgages, commercial mortgages, auto loans, or credit card debt obligations, and selling the pooled debt as securities to investors. Explain the meaning of securitization, how the structure of securitization take place.Commercial banks obtain funds to make loans from all the following sources except Multiple Choice funds borrowed from the Federal Reserve Bank. money deposited by their borrowers. direct appropriations from the federal government. equity capital of the bank's owners.You are required to identify and give reasons for the appropriate classification of the debt instruments A and B below: Part A.Macaroon holds certain debt investments to collect their contractual cash flows of interest and principle. The funding needs of the company are predictable and the maturity of such financial assets is matched to Macaroon’s estimated funding needs. Macaroon performs credit risk management activities with the objective of minimising credit losses.In the past, Macaroon has sold some of its debt investments when the credit risk of the financial assets increased beyond the acceptable levels of risk as documented in the company’s investment policy. In addition, infrequent sales have occurred as a result of unanticipated funding needs. The managers reports to key management personnel focus on the credit quality of the financial assets and the contractual return. Part B.Macaroon holds certain debt investments with specified contractual cash flows of interest and…
- Which of the following acts as an intermediary between the savers and investors by mobilising funds between them? a.Financial Markets b.Households c.Financial Instruments d.GovernmentThe FHA implements its programs with which of the following procedures? Providing government bonds as collateral for loans Issuing an insured commitment covering the loan Funding a portion of each loan at closing Guaranteeing a portion of each loanWhich of the following is considered to be a good debt? Select one or more: a. credit card debt b. student loan debt c. store credit card debt d. payday loan
- Describe the nature of the basic services of financial institutions. What are the channels through which the financial system matches savers and borrowers.? What is a financial intermediary?When assessing the creditworthiness of new entrepreneurs, lending institutions review the “Five C’s”. The guarantees, or additional forms of security (such as assets) the entrepreneur can provide the lender is known as? * conditions capacity collateral capitalThe term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only those funds loaned to banks by the public. c. only those funds loaned to banks by the central bank. d. all those funds changing hands between the lenders and borrowers in the financial markets.
