1 Which of the following is least lkely to be a finucial intermediary?A Finance companier 8,Mutual funds C. Pension funds D. Investment banks E. Savings banks2 Which of the following do not have corporate stock ownership?A. Commercial banks B. Savings and loan associations C. Savings banksD. Credit union All of the above3. A financial institution that raises furnds by issuing shares to the public and invests the proceeds in adivensified portfollo for a management fee isA. Banks B. Pension FundyMutual Funds D. Financecompanies E. None of the above-4. One of the following types of financial instruents derive their value from other instruments(underlying assets)A Cash instrumentsO Derivative instrumentsD. Debt instrumentsB. Equity instruments

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Answered: 1 Which of the following is least lkely…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3 These are the examples of non-banking financial intermediaries except:* A. Discount house B. Insurance companies C. Pension fund D. Credit guarantee Corporation
Title Every financial market has the following characteristic: Description Function of Financial Markets 1) Every financial market has the following characteristic: A) It determines the level of interest rates. B) It allows common stock to be traded. C) It allows loans to be made. D) It channels funds from lenders-savers to borrowers-spenders. 2) Financial markets have the basic function of A) getting people with funds to lend together with people who want to borrow funds. B) assuring that the swings in the business cycle are less pronounced. C) assuring that governments need never resort to printing money. D) providing a risk-free repository of spending power. 3) Financial markets improve economic welfare because A) they channel funds from investors to savers. B) they allow consumers to time their purchase better. C) they weed out inefficient firms. D) eliminate the need for indirect finance.
Class book: Fundamentals of Corporate Finance by Brealey, Myers, and Marcus Functions of Financial Markets.Fill in the blanks in the following passage by choosing the most appropriate term from the following list: CFO, save, financial intermediaries, stock market, savings, real investment, bonds, commodity markets, mutual funds, shares, liquid, ETF's, banks. Each term should be used only once. Financial markets and ___________ channel _____ to ______. They also channel money from individuals who want to ________ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, _______, such as the Vanguard Index fund, and ________, such as SPDRs or "spiders," allow individuals to spread their risk across a loarge nmber of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the ______ to reduce their exposure to wheat…
he Jones Bank Ltd has two departments. a) a pension fund department, which invests money on behalf of clients and customers, by investing in bonds, shares and so on. b) a merchant bank department, one of whose clients is the prestigious and dynamic Sampson and Brown Ltd, which is to offer a new tranche of shares to the investment community. Required: Identify the potential conflict of interest. DISCUSSION In times of recession, it is the banks who ultimately decide whether a particular business survives or fails. There is a widespread view that banks should support small businesses come what may, as not to do so would be socially irresponsible. Give reasons for and against this view.
1. Given the choices from time deposits, corporate bonds and stock, where will you invest your company's excess funds? Why? 2. Provide the two major types of Financial Instruments and explain each type briefly.
The Jones Bank Ltd has two departments. (a) a pension fund department, which invests money on behalf of clients and customers, by investing in bonds, shares and so on. (b) a merchant bank department, one of whose clients is the prestigious and dynamic Sampson and Brown Ltd, which is to offer a new tranche of shares to the investment community. Identify the potential conflict of interest between department (a) and department (b)
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Which of the following can be considered as financial institutions in a good financial system? a. Treasuries b. Stock Exchanges c. Banks d. All
Which of the following can be described as involving indirect finance? a. People pay premiums to an insurance company b. A corporation issues new shares to people c. People lend money to their friends d. People buy bonds from companies
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