Which of the following is not true with Money Market? Select one: a. Deals in short term funds b. None of the options c. Provides funds for fixed capital d. Provides link between depositors and borrowers
Q: Which one of the following is not a part of money market? a. Call money market b. Commercial…
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Q: Which of the following best describe the flow of funds in a financial market? * a. suppliers of…
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- Those financial markets that facilitate the flow of short-term funds are known as: Question 6 options: money markets capital markets derivative markets mortgage marketsWhich of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of theseWhich of the following statements regarding the banks motives for holding reserves is incorrect ? A ) If banks on average expect an increase in policy rates they will be inclined to decrease their reserve holdings. B ) As the opportunity cost of holding reserves increase ,ceteris paribus banks are expected to decreasetheir holdings. C ) Depending on the volatility of fund inflows and outflows banks adjust the amount of their reserve holdings accordingly. D ) Under instable financial conditions banks are inclined to hold higher amounts of reserves compared to normal levels.
- Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…Which of the following investment types cannot be sold during normal market hours? a) mutual fund b) cryptocurrency c) exchange traded fundWhich of the following statements is incorrect? Cash fund that is being held specifically for the retirement of long-term debts not maturing currently should be excluded form current assets and shown as a noncurrent investment Cash and cash equivalents is always presented as the first line item in the statement of financial position Investments that can be liquidated at once and with little risk of loss of principal may be classified as cash equivalent and included in the caption "Cash and Cash equivalents" Cash that is restricted and not available for use within one year from the end of reporting period should be included in noncurrent assets
- Investors have no control over ________________ distributions when investing in mutual funds. a) capital gain b) domestic yields c) inflationaryWhich of the following is not a source of funds for immediate liquidity purposes? Question 9Answer a. Excess cash above regulatory reserve requirements. b. Funds borrowed on the money market. c. Proceeds from an IPO. d. Sale of liquid assets such as T-bills.Which of the following assets would be considered least liquid? Group of answer choices A savings account A checking account An interest-paying checking account A money market mutual fund Series EE US savings bonds
- The funds invested in current assets are termed as Select one: a. long term assets b. Short term loans c. None of the options d. Net Working Capital e. Short-term liabilitiesWhich one of the following is not a money market securities. Choose correct option and explain and also explain incorrect options and also explain summary A•Treasury bills B•National savings certificate C•Certificate of deposit D•Commercial paperWith respect to hedge fund investing, the net return to an investor in a fund of funds would be lower than that earned from an individual hedge fund because of:a. Both the extra layer of fees and the higher liquidity offered.b. No reason; funds of funds earn returns that are equal to those of individual hedge funds.c. The extra layer of fees only.
