What are the implications of excess liquidity for the stability of the financial sector?

Q: How do transaction costs and asymmetric information hinder the growth of financial markets?

A: Transaction cost : transaction cost are expense incurred when buying or selling goods or services.…

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: what is financial leverage and its implications for company performance?

A: Company borrow amounts to buy assets and do business.

Q: The financial leverage implications for company analysis?

A: 1. Financial Leverage: To finance the New Assets management borrowed money. it is called financial…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: The financial leverage implications for company performance?

A: Financial Leverage means the inclusion of debt in the company's capital structure. Debt is used to…

Q: Financial management techniques?

A: Financial management is a very important aspect because it helps firms in various areas like funds…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: What are the options available to a company in the event of a financial failure?

A: Overspending and a more considerable degree of illiquid assets might lead to the firm's financial…

Q: Why might a company want to hedge its balance sheet exposure? What is the paradox associated with…

A: Reason for company to want to hedge its balance sheet exposure: For avoiding the impact of…

Q: What were the direct and indirect costs of the LIBOR scandal for Barclays? Are these costs only a…

A: The LIBOR Scandal: The LIBOR Scandal came to light in 2012 when Barclays and other banks admitted…

Q: In which way CDOs can create a liquidity squeeze in the financial markets

A: The financial market is a market where people trade financial securities and derivates. The…

Q: novation cau

A: Financial markets exhibit asymmetric information in any transaction in which one of the two parties…

Q: What is the link between securitization and the economic function of financial intermediaries? What…

A: Introduction: Securitization combines diverse financial assets into a single instrument that is then…

Q: What is the connection between securitization and the economic function of financial intermediaries?…

A: Introduction: Markets for the trade of financial securities are known as financial markets. These…

Q: What are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: Why are financial markets important to the health of the economy?

A: Financial market is the marketplace where purchasers and sellers interact with each other and…

Q: What allows financial institutions to generate a profit? What are the conditions under which their…

A: THE INTRODUCTION: The marketplaces where financial assets and instruments are traded and the sites…

Q: What is the basic function of a financial market?

A: Financial markets are a type of marketplace, by the name itself that gives a road to the selling and…

Q: Describe the strenghts and weaknesses of companies dding debt in their capital structure.

A: Debt is a financial instrument which is used by the companies to fund their business. Companies…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: Deferring roles of financial institution play in economy

A: Financial institutions, also referred to as the banking institutions, are the corporations that…

Q: What is Competitiveness and how it affects financial market. Identify the risks that may arise.

A: The search for long-term competitive advantage is an important part of all business activity – one…

Q: How do economies of scale and lumpy assets affect financialforecasting?

A: Economies of scale are cost advantages reaped by companies when production becomes efficient.…

Q: Liquidity dry up could cause a financial institutions to become balance sheet insolvent. Briefly…

A: Liquidity dry up occurs when financial institutions have a shortage of accounting, funding, and…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Introduction: Financial markets are markets where the exchange of financial securities takes place.…

Q: Should companies preserve their financial flexibility in times of financial crises?

A: Definitions : Financial flexibility : In simple words, financial flexibility can be defined as the…

Q: Financial markets: efficient and other.  How are financial firms able to make profits? Under what…

A: Introduction: Usually, financial institutions such as banks and insurance providers raise and pool…

Q: What is the risk in the context of financial decision making and performance?

A: Financial decision making: Financial decision making denotes to decision making concerning financial…

Q: When do liquidity management solutions deliver maximum value to the firm?

A: Liquidity management is an important aspect of treasury management. Essentially treasury management…

Q: how do banks improve asset utilisation to increase Return on Equity and what are the risk…

A: Banks are the financial institutions which deposit money from customers at lower interest rates and…

Q: What is Financial Modeling in Corporate Finance?

A: Corporate Finance talks about financial items of a corporation. It majorly discuss about the sources…

Q: What are the roles of Financial System in the Economy?

A: The financial system plays an important role in the development of the economy. It helps in order to…

Q: What can I recommend to this company to increase its liquidity position?

A: Current ratio: It is one of the liquidity ratios which is calculated by dividing the current assets…

Q: What is the fundamental function of financial markets?

A: The market where both buyer and seller interact in order to buy and selling of various financial…

Q: Minsky’s instability hypothesis

A: Hyman Minsky was a famous American economist.

Q: What is the impact of capital controls that restrict mobility of capital across nationalborders on…

A: Capital controls are the controls that are implemented on the international movement of capital.…

Q: What’s the impact of risk on financial markets and institutions profitability?

A: Financial market is the place where securities like stocks and bonds along with other financial…