Economists assert that financial markets serve the function of efficiently allocating capital. What is meant by the function? Explain and include an example.

Q: Describe the difference between financial markets and financial intermediaries? How can your funds…

A: Monetary business sectors and Financial go-betweens are two channels through which the monetary…

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: With relevant examples, discuss the functions of a financial market.

A: Functions of a financial market #1 – Price Determination  The financial market plays out the…

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: How has the COVID-19 pandemic affected the operations/performance of specific financial…

A: Coronavirus has brought the world into a state of crisis. The economy loses its equality and cannot…

Q: Explain the ways in which financial institutions manage credit risk.

A: Credit: This term has numerous implications in the financial world, however, acknowledge is, for the…

Q: s on the services provided by invest

A: Answer Investment Banks    They are a corporation or a company division with monetary services to…

Q: financial market

A: The safety of the asset depends on few characteristics. These will decide weather the asset is safe…

Q: Capital formation is said to be facilitated by financial intermediation. Describe the way in which…

A: Capital Formation Definitions: Capital formation is a crucial part of economic development. This…

Q: Please describe in as much details as possible the different types of private equity fund asset…

A: Private equity funds are pools of capital that are invested in companies that offer a high rate of…

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: Why are non-banking financial companies valuable to the financial system? Elaborate all the…

A: India's financial administration's area is colossal. It doesn't simply contain business banks yet in…

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: Discuss the flow of funds and the flow of financial instruments in the financial system.

A: A financial system refers to a set of financial institutions that include banks, stock exchanges,…

Q: Question: Explain, using examples, the importance of financial intermediation to the flow of funds…

A: An economic system is a network that establishes economic relationships among individuals in…

Q: Young people with little wealth should not invest money in risky assets such as the stock market,…

A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…

Q: Name and briefly explain what are the 5 functions of capital in financial institutions

A: FINANCIAL INSTITUTION:                  A financial institution facilitates transactions  and is the…

Q: Why do bubbles form, and how can they turn into financial crises?

A: When one or more major financial assets, such as stocks, real estate, or oil, lose a significant…

Q: How economy plays a vital role in controlling stock prices.

A: A stock market, also known as an equity market or a share market, is a gathering of buyers and…

Q: What has happened to the profitability of financial firms in the US economy in recent decades? Why…

A: After the global financial crisis of 2008-09, US financial companies have been doing very well;…

Q: Why is it so important to an economy to have fully developed financial markets?

A: Financial markets are those markets in which creation and trading of financial assets take place .…

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: Describe one of the simple method that is commonly used to screen capital investments?

A: The payback method is one of the simple methods used for the screening of capital investment before…

Q: If junk bonds are called "Junk" Why then would as an investor buy Junk bonds?   Explain your reasons…

A: Junk bonds are bonds which carry a higher default risk than most corporate and government issued…

Q: Question 3- What type of financial institutions may offer the services for reception and…

A: Savings and investments are guided between providers with capacity to lend or invest through capital…

Q: There’s no penalty for withdrawing funds from investments before they mature. True or false

A: When a depositor withdraws funds or closes out a time deposit before the maturity date, an early…

Q: How would a financial manager's role in a corporation increase/decrease if the rate of inflation in…

A: Inflation has its own pros and cons. Consumers are worse-off with inflation but investors can enjoy…

Q: Explain why the existence of financial institutions can allocate financial resources better!

A: Good financial sectors mean banks and financial institutions have a major role to play in the health…

Q: . Duration is an accurate measure of the relationship between percentage changes in a bond price and…

A: Duration can be defined as a tool for estimating how long it takes, in years, for an investor to pay…

Q: Explain the functions of financial markets with the help of a structured diagram.

A: Working of Financial Market The activity of lending and borrowings occurs in the Financial/Monetary…

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 why repurchase agreements (repo) and securities are used as a lending practice  in capital…

A: For government securities dealers, a repurchase agreement is a type of short-term financing. When a…

Q: difference of the demand of financial services

A: Financial services include a wide range of economic activities like investing, managing insurance,…

Q: What type of open market operation is expansionary? (Is it a purchase or sale of bonds?)

A: Open market operations refer to purchase and sale of bonds

Q: Explain in detail the structure of the Financial System in India. Draw a flow chart...

A: Financial sector is the most important sector for any country. This is because it helps to maximize…

Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…

A: Interest rates affect the profitability of financial institutions. The financial institutions…

Q: Explain IN DETAIL how wealth management companies contribute to the economy.

A: The first step in wealth management, sometimes known as "private wealth management," is to meet with…

Q: Q1. The importance of studying financial markets and financial institutions for the citizens.…

A: The primary function of the financial market is to facilitate the movement of funds from savers to…

Q: Answer the attached question

A: With rise in stock prices, it is only profitable till shares are sold.

Q: What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?…

A: Investment is any asset in which an investor invests in order to earn profit expecting increase in…

Q: Identify several different types of financial institutions, and describe the main services these…

A: Answer:- Different types of the financial institution and main services of this institution offers…