When the safe investments that pension funds usually rely on are paying less than 1 percent, then pension funds can rely on the safe investments? Why?

Q: What is the relationship between risk and return in finance? Why does this relationship hold in the…

A: A return refers to the additional net revenue received from the investment. Risk refers to the…

Q: Discuss the uses of Mutual Funds. a) Diversification of Investments

A: Diversification refers to putting together a portfolio of shares from various asset groups. It…

Q: Deliberate specifally how and through which channelss the interest rate affects (negatively or…

A: Interest rates can impact the economic activities in different ways. When the interest rates are…

Q: Some people think that financialmarket transactions should be taxed. What are the arguments for and…

A: A financial transaction is a contract between a buyer and a seller to exchange goods, services, or…

Q: What is the difference between shares of stocks from mutual funds?

A: A stock in a market is called equity and it is described as security that depicts the possession of…

Q: How does risk sharing benefit both financial intermediaries and private investors?

A: Risk-sharing - risk sharing is a method of sharing risk between the participants.

Q: What should be the role of government in regulating financial institutions?

A: In the financial market, financial institutions are the players that act as the both the supplier as…

Q: Explain why emerging market economies is important in financial markets?

A: Financial markets represent the marketplace in which the buyers and sellers trade various financial…

Q: How do interest rates affect bond yield and bond prices.

A: Bonds are a form of financial security in case of which the issuer owes the holder a debt. Borrowers…

Q: Explain why a mortgage-backed security becomes riskier when the values of the underlying houses…

A: Mortgage-backed securities are more risky. The cost of borrowing is represented by interest…

Q: Why do you think that U.S. banks are prohibited from holding equity as part of their own portfolios?…

A: PLEASE NOTE AS PER THE BARTLEY  Y POLICY I HAVE ANSWERED FIRST QUESTION. PLEASE POST ANOTEHR…

Q: Assume that you are a wealthy investor, which one do you prefer mutual funds or hedge funds? Why?

A: Mutual fund and multifaceted investments are overseen portfolios worked from pooled assets fully…

Q: What are the seveb major types of financial institutions as of today?

A: Financial Institutions  Financial institution refers to the institutes which provide the services…

Q: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed…

A: Financial economics deals with the financial markets, their operations and functions, and the…

Q: Explain how shares of stocks differ from mutual funds.

A: A stock (also referred to as equity) is a security reflecting the ownership of a fraction of a…

Q: How might the magnitude of the market risk premium impact someone's desire to buy stocks?

A: A risk premium is the projected investment return on an asset that is higher than the risk-free rate…

Q: How the lemons problem could cause financial markets to fail? Explain it with using your own words,…

A: In perfectly competitive markets, the information is equally shared by the economic agents-…

Q: How the time based term effects interest rates and its yield curve?

A: A yield curve is a graph that compares the yields (interest rates) of bonds with similar credit…

Q: Define what financial instisutions are and give examples to explain your understanding

A: Types of financial institutions include: 1. Depository institutions:  These institutions are deposit…

Q: Financial liberalization is eliminating various forms of government intervention in financial…

A: The liberalization refers to the process of reducing the government intervention in the economic…

Q: Would you recommend the adoption of a system ofdeposit insurance, like the FDIC in the United…

A: No, i would not recommend the adoption of a system of deposit insurance, like the FDIC in the United…

Q: How much money can you put into a pension plan? How much money can you expect to get out of…

A: Pension plans are considered important as they are for a persons’ secured future. The pension plans…

Q: What is the discount bond?

A: A bond is a financial instrument that specifies the financial obligation of the bond issuer to the…

Q: Bear Stearn case: In light of the collapse of the hedge funds, how serious were Bear’s credit…

A: Bear Stearn case: In light of the collapse of the hedge funds, how serious were Bear’s credit…

Q: How do public pension plans differ in other countries? Has privatization worked overseas?

A: The market value of final products and services produced within the economy within a certain time…

Q: What are the requirements that a company must have, in order to insert in Borsa Italiana stock…

A: Companies of all sizes can use the Borsa Italiana stock exchange to generate considerable funds to…

Q: Explain the difference between a defined benefit and defined contribution pension plan.  Then…

A: Defined-benefit and defined-contribution plans are the two main types of employer-sponsored…

Q: Explain the functions of financialintermediaries?

A: Financial intermediaries is a person or organization that connects two different parties for…

Q: What is Supplies of Liquid Funds? What are Laws Limiting Bank Lending and Risk?

A: Liquid funds are mutual funds that invest in assets having a residual maturity of up to 91 days.…

Q: Bankers have a reputation for conservatism in politics, dress, and business affairs. Is there an…

A: Yes it is rational. Th checking deposit that provided by the bank is the best example of the fiat…

Q: Why are financial intermediaries willing to engagein information collection activities when…

A: The financial intermediaries provide different instruments to their customers. They provide…

Q: If interest rates decline, which would you rather beholding, long-term bonds or short-term bonds?…

A: Long-term bonds come with a maturity span of 10 years to 30 years. In general, such bonds pay a…

Q: V = D + E   Value of Asset = Debt + Net Worth   According to normal economic theory, when will…

A: Given: V = D + E

Q: What do you understand by social security? What do you understand by the “pension crisis” and how…

A: Social security is the monetary form of assistance provided by the government for the public.It…

Q: Discuss of the changes in the type pensions schemes being offered by employers.

A: Employers: It refers to the people who provide employment to the people in the economy. The…

Q: Explain what is meant by Creation of NPAs as a challenge faced by financial system

A: A non-performing asset widely known as NPAs is a loan or an advance for which the principal amount…

Q: discuss efficient portfolios and what information they can provide

A: A portfolio is defined as a grouping of financial investments such as bonds, stocks, cash,…

Q: EXPLAIN YOUR UNDERSTINDING OF EQUITY INSTRUMENTS AND IDENTIFY THE MARKETS WHERE EQUITY INSTRUMENTS…

A: Financial markets are those market place where security are  traded. There are two types of…

Q: What is the difference between detachable stock warrants and convertible bonds?

A: A bond is essentially an advance taken out by an organization. Rather than going to a bank, the…

Q: Individuals can withdraw their pension funds at any time, even before they reach retirement age. *…

A: Labor Force: The term labour force refers to those people who are above 16 years of age or fall in…