What are the credit transfer markets?

Q: how can Credit Metrics Model resolve credit risk management issues

A: what is credit risk- credit risk is that the risk to default ensuing from a receiver failure to…

Q: In your own words, explain the advantages and disadvantages of credit.

A: Credit involves making the purchase of goods or availing services and paying for the transaction in…

Q: What is retail banking?

A: Banking refers to a financial institution that lends money and receives deposits from its customers…

Q: What are the effects of lending institutions on the economy?

A: Economy has different functions to maintain like the currency management, trading activities,…

Q: What are financial intermediaries, and what economic functions do theyperform?

A: Financial intermediaries connect the borrowers and lenders in the financial market. The financial…

Q: What makes the banking industry a specialized industry?

A: Solution:- Introduction:- Accounting means art of recording, classification, measuring transactions…

Q: What is currency appreciation?

A: It is defined as the increase or improvement in the estimation of a national money over the…

Q: what basic criteria are commonly used in evaluating credit risk?

A: Credit risk is the risk of facing a loss due to a counterpart's failure to repay the debt in part or…

Q: Define commercial bank

A: Commercial bank It is a sort of financial institution that acknowledges deposits, gives account…

Q: what are the classification of financial market ? Explain its different components?

A: A financial market is an essential part of the financial system. It is defined as a marketplace for…

Q: What is credit enhancement, and what effect does it have on debt costs?

A: Credit enhancement represents the strategy that improves the business' credit risk profile. It helps…

Q: Define Credit analysis

A: Credit analysis is the method by which the creditworthiness of a business or organization is…

Q: Discuss the factors which led to the Credit Crunch.

A: A credit crunch refers to a decline in lending activity by financial institutions due to shortage of…

Q: How is Accounting affected by Digital Currencies?

A: Digital Currency: It is a currency which can't be seen or touched but stored, managed and exchanged…

Q: Describe the trade-offs of extending credit.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: What is the importance of Credit Rating Agency?

A: Credit Rating agencies assign the credit rating to the issuer of debt. They provide information…

Q: Discuss the relationship between Credit View and Monetary Policy.

A: Monetary Policy:Monetary Policy is a policy that is planned and implemented by the central bank of a…

Q: FINANCIAL GATEWAY

A: Finance refers to the description of activities, debt, funds, credit, leverage, etc in a company. It…

Q: What is money market?

A: Introduction: Money market is a market for short period funds or financial assets. It deals with…

Q: What is consumer credit? What are its advantages and disadvantages?

A: Consumer credit allows the customer to buy the product immediately, without paying for it at the…

Q: what are the strategies to improve credit

A: Credit is referred as an agreement, which are between the borrower and the lender. It might decrease…

Q: What are the similarities of money and currency?

A: Money refers to the medium of economic exchange between individuals for their financial and economic…

Q: What are the advantages and disadvantages of using credit?

A: Credit is defined as the financial agreement where the borrowers receive something valuable and in…

Q: What is the role of transferring credit risk? What is the various instruments used to transfer this…

A: Risk transfer is a management strategy that involves transferring the risk from one party to another…

Q: Explain how factoring works. Of what benefit is factoring to a firm that sells its receivables?

A: Lets first understand the meaning of factoring. Factoring is a selling the debtor to the factor at…

Q: What is credit risk

A: In the world of finance credit risk is one of the most important risk and one of the most tangible…

Q: What is financial intermediary?

A: A financial system comprises of financial intermediaries to intermediate and facilitate the…

Q: Why monetary policy is important?

A: Monetary policy is the policy which controls the supply of money available in the country to promote…

Q: What are the five Cs of credit? How do these serve as a yardstick for creditevaluation?

A: The “5 Cs of credit” is a system used to estimate the creditworthiness of the borrowers. The 5 Cs…

Q: Why is granting credit riskier in an international context?

A: The term credit refers to selling goods on credit by the business top its customers i.e. instead of…

Q: Money market instruments are distinguished by what characteristics, if any, do they have?

A: The money market is a word that relates to the trading of relatively short-term debt securities.

Q: How can we classify functions of the Banks? Explain all functions with an example?

A: classification of banks on the basis of their function: commercial banks foreign banks industrial…

Q: What is the incremental cash flows from switching credit policies?

A: Incremental cash flow is the extra cash flow a business will generate by investment in a new project…

Q: What are the four credit policy variables?

A: Credit policy is formed to manage the account receivables. It directly effects the working capital…

Q: Identify the relationship between money, credit?

A: Money is considered as the financial medium exchanged between parties that enable the transaction.…

Q: Why money markets are important? Discuss the types of money market instruments..draw a flow chart.

A: Money market deals in instruments that have a duration of equal to or less than a year. This market…

Q: How does investment bank make money?

A: An investment is a large company providing financial services and that act as intermediary in…

Q: Distinguish between commercial and Investment banks.

A: Investment banks help companies manage their funds. They help these institutions to access capital,…

Q: What’s the difference between free trade credit and costly tradecredit?

A: Trade Credit is a kind of credit financing extended by the trader or supplier of goods and services…

Q: How does the cost of costly trade credit generally compare with the cost of shorttermbank loans?

A: Trade credit is that the quantity businesses owe to their suppliers on inventory, products, and…

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: What is free trade credit?

A: Trade Credit is a type of credit financing extended by the trader or supplier of goods and services…