What is the financial market, what does it do in terms of saving investment and interest rates

Q: in the role of commercial banks in an economy?

A: Macroeconomics refers to the economics that deals with the structure, decision-making performance as…

Q: How are financial firms able to make profits?  Under what circumstances are their profits limited?

A: Financial companies profit from investing their funds in firms that have the potential to grow and…

Q: People should buy bonds when they think that interest rates are as high as they will go.

A: A bond is a financial instrument that allows an issuer to raise capital by borrowing money from…

Q: What are Fixed assets? What do they include?

A: If a firm use a tangible piece of his own property to generate his income is known as fixed asset.…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: Short term savings and loans are part of what

A: Financial Market generally in an economy is characterized as – Money Market and Capital Market…

Q: If the interest rate is 8%, how much households and firms will want to borrow?

A: The households and firms that want to borrow imply the demand for funds in the market. Thus we will…

Q: How do the sophisticated financial systems of modern economies affect the relationship between…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: Do the interest rates reflect the market interest rate?

A: An amount of money due per period as a proportion of the loan, deposit, or borrowing amount is…

Q: What are the keyword that contrast savings and investment?

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: What is a balance sheet? What is net worth?

A: Balance sheet and net worth are part of financial analysis and accounting.

Q: Why is it important for people who own stocks and bonds to diversify their holdings? What type of…

A: System that permits exchange of funds between the borrowers, investors and lenders via the medium of…

Q: what are the roles of financial managers?

A: Financial Manager plays the critical role when it comes to the financial management of firm.

Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…

Q: What are the different types of investmen

A: Investment is the new expenditure on physical assets such as machines, buildings, tools and…

Q: What are the most liquid assets?

A: A liquid asset is that type of asset which can be easily converted into cash in a very short period…

Q: What are three sources of saving that can be used to fnance investment?

A: What is saving To economists, saving is consuming less in present to consume more in the future. It…

Q: What do you think accounts for the wide range of savings rates in different countries?

A: Saving rate- It is the ratio between savings of household and (unadjusted) gross disposable income.

Q: How could people be persuaded to start saving for retirement?

A: Retirement planning is the process of putting money aside, investing it, and then distributing it in…

Q: What is business circle?

A: The fluctuation in the economic activity is tracked by the business cycle or circle. In an economy,…

Q: Write the formula of Effective interest?

A:

Q: List the main function of investment banks in the financial system?

A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…

Q: Economics - Chapter 11 Section Review WHAT STEPS WOULD YOU TAKE TO PURCHASE A BOND AND HOw WOULD YOU…

A: A bond is a fixed-income security that reflects a loan from an investor to a borrower (corporation…

Q: Do the financial institutions usually quote the interest rate on an annual basis?

A: The interest rate is a specific percentage of principal that must be paid by a borrower of money to…

Q: What is stock exchange

A: Capital is a very important factor while setting up any business. Capital refers to the amount of…

Q: Why is ownership of a corporation the easiest to transfer?

A: A corporation  varies from a sole proprietorship and a partnership in that it is a separate legal…

Q: what is high interest rates?

A: In an economy, interest rate is one of the economic term used at the marketplace when people make an…

Q: If interest rates increase in financial markets, then...

A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…

Q: What is importance of financial markets for the productive capacity of the economy?

A: The economies work with the motive of increasing, or enhancing their overall economic growth, and…

Q: What are the functions of stock exchanges in the economy?

A: The following problem has been answered as follows:

Q: What is the relationship between interest rates and business investment?

A: To determine the relationship between interest rates and investments.

Q: How is capital transferredbetween savers and borrowers?

A: A financial institution is a channel that transfers capital between borrowers and savers. They only…

Q: How is physical capital related to financial capital?

A: Physical capital refers to the tangible goods that are produced by the company.  Examples raw…

Q: Explain how financial market mobilizes money and wealth creation opportunity within a country.

A: Financial market mobilizes money through a well developed process and bringing over the smooth…

Q: find the value of the following accounts : 1- national savings ? 2- Business savings ? 3- Government…

A: Since you have asked multiple sub-parts but we can solve only first three parts for you if you want…

Q: What is the financial system, Name and describe two markets that are part of the financial system in…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: What does the interest rate measure?

A: Market interest rate refers to the interest rate that the lenders expect or demands from the…

Q: Differing role of financial market in economy

A: Financial markets typically refer to any marketplace where shares are traded, including, though not…