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- Financial intermediaries a.reduce the cost of financial transactions. b.provide safety of resources only for the large borrowing customers who can afford it. c.increase the cost of financial transactions but offset these higher costs by providing safekeeping of customer funds. d.provide handling of payments but usually less efficiently than other firms.It is a form of guarantee given by a reputable bank. If the borrower defaults in paying, the investor has legal recourse to the bank. a. Repurchase agreement b. Banker acceptance c. Certificate of deposit d. Commercial paperExplain in no more than 5 sentences. Why is there is a need to follow certain financial precautions when writing cheques?
- How can cryptocurrency's advantage and disadvantages help the economyBank does not provide this service: a. ATM b. online banking c. debit card insurance d. credit card insurance e. overdraft protection What are the reasons to save? a. future Purchases b. Emergencies c. Future Investments d. Compounding e. All of the aboveChecks are: a. Not a means of payment b. Not money c. Not a promise of any kind d. Not acceptable by the U.S. Government for payment of taxes
- Why is money considered fungible?The government regulates the banking industry by a. limiting the quantity of some kinds of assets that a bank may own. b. conducting frequent audits and examinations. c. limiting the kinds of assets that a bank may own. d. All of these responses are correct.What is the main purpose of AMLC (Anti-Money Laundering Council? *a. Monitor all transactions of banks in the Philippines.b. None of the choices.c. Investigate the source or origin of funds for transactions P500,000 and above.d. Provide insurance for bank deposits.
- Summarize howtransaction costsaffect financial intermediaries.Jan saw an item at a local department store that she considered purchasing but did not. After getting home, she changed her mind. Her roommate was going to the same store, so Jan asked the roommate to pick up the item for her. Jan gave her credit card to the roommate and said, "Just sign my name; you know they never check the signature." The roommate purchased the item with Jan's credit card and signed Jan's name. Has the roommate committed forgery? Yes, because the roommate misrepresented herself as Jan. Yes, because forgery occurs whenever one person signs the name of another. No, because the store did not realize that the roommate was not Jan. No, because the roommate did not intend to defraud either Jan or the store. No, because Jan is always liable for charges on her credit card.What are the primary differences between different types of banks (savings, commercial, investment, contractual, intermediary, national, credit unions, etc.)? How are insurance companies acting in the capacity of banks?
