Homework Answers
Answer : A bank is a financial intermediary. (THUMBS UP PLEASE)
EXPLANATION : A financial intermediary is a financial institution which acts as connecting link between surplus and deficit agents. The classic example of a financial intermediary is a bank that accepts deposits and uses those funds to transform them into loans. The job of financial intermediaries is to connect borrowers to savers.
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Which of the following statements is most correct? Financial intermediaries are banks Financial intermediaries are insurance...
There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual...
There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual funds, hedge funds, pension funds, insurance companies, etc. Why are there so many different financial intermediaries other than commercial banks? How does an investor’s risk attitude and/or wealth play a role in his/her selection of a financial institution or intermediary? If you were an investor seeking moderate return for your investment, how would you select a financial institution or intermediary? Choose one and explain...
List three financial intermediaries that are not commercial banks, insurance companies nor investment banks
List three financial intermediaries that are not commercial banks, insurance companies nor investment banks
Which of the following statements is/are false regarding Investment Banks: I.) Act as intermediaries between issuers...
Which of the following statements is/are false regarding Investment Banks: I.) Act as intermediaries between issuers of securities and investors. II.) Act as advisors to companies in helping them analyze their financial needs and find buyers for newly issued securities. III.) Similar to commercial banks, accept deposits from savers and retirees to fund their business. I and II Only II Only I and III Only III Only
Which of the following statements is false? A. Today, most financial assets are held by non-bank...
Which of the following statements is false? A. Today, most financial assets are held by non-bank entities B. Economic recovery is usually quick following widespread bank failures and/or a financial crisis OC. Today, banks pay a risk-based deposit insurance fee; i.e., riskier banks must pay a higher insurance fee to the FDIC D. Banks constitute a vital utility in the economy, as the economy cannot properly function without access to credit E. The primary reason for the existence of banks...
Which of the following statements is (are) correct? (x) Banks and credit unions are considered financial...
Which of the following statements is (are) correct? (x) Banks and credit unions are considered financial intermediaries because they act as financial institutions through which savers can indirectly provide funds to borrowers. (y) Mutual funds are one type of financial intermediary and the advantage of mutual funds is that they allow people with small amounts of money to diversify as well as give ordinary people access to the skills of professional money managers. (z) A mutual fund is an institution...
Which of the following is not true? Banks and other financial intermediaries help make the market...
Which of the following is not true? Banks and other financial intermediaries help make the market for loanable funds fluid O and ease transactions by helping match one person's savings with another person's investment. The market for loanable funds works like any other competitive market with many buyers O and many sellers. The market for loanable funds is comprised of those who want to save the suppliers of funds) and those who want to borrow (the demanders of funds) Where...
Which of the following is not a key feature of banking in the EU? European banks are allowed to engage in securities m...
Which of the following is not a key feature of banking in the EU? European banks are allowed to engage in securities markets. European banks are generally significant shareholders in European companies. European banks rely much more on equity than deposits. Regulation covers bank exposures to sovereigns. None of the answers. Which type of financial intermediary is more highly exposed to liquidity risk? Property-casualty insurance companies. Life insurance companies. Mutual funds. Depository institutions. Pension funds.
Primary dealers none of the listed answers are correct are small banks in the primary stage...
Primary dealers none of the listed answers are correct are small banks in the primary stage of development cannot trade securities directly with the Federal Reserve Bank trade securities directly with the Federal Reserve Bank The bid/ask spread is the price of that the dealer sells securities information liquidity demonination Which of the following would be most likely to use a financial market? A state government wishing to borrow to finance a highway project A small business wishing to borrow...
Which of the following functions of Financial Intermediaries is not shared by Food Intermediaries? O A....
Which of the following functions of Financial Intermediaries is not shared by Food Intermediaries? O A. absorbing differences in timing OB. absorbing differences in quantity C. specializing in information OD. repacking products E. diversifying default risks
Question 1 (1 point) The four elements of a financial system are (1) institutions including banks...
Question 1 (1 point) The four elements of a financial system are (1) institutions including banks and non-financial entities like households, 2) financial products, (3) venues where financial products can be exchanged and (4) ___________. Question 2 (1 point) For the past 65 years, the U.S. financial system has been characterized by, Question 2 options: a) Households that are surplus units, a government that is a surplus unit, businesses that are deficit units and a foreign sector is a surplus...
Which of the following statements is false? A. Today, most financial assets are held by non-bank entities B. Economic recovery is usually quick following widespread bank failures and/or a financial crisis OC. Today, banks pay a risk-based deposit insurance fee; i.e., riskier banks must pay a higher insurance fee to the FDIC D. Banks constitute a vital utility in the economy, as the economy cannot properly function without access to credit E. The primary reason for the existence of banks...
Which of the following is not true? Banks and other financial intermediaries help make the market for loanable funds fluid O and ease transactions by helping match one person's savings with another person's investment. The market for loanable funds works like any other competitive market with many buyers O and many sellers. The market for loanable funds is comprised of those who want to save the suppliers of funds) and those who want to borrow (the demanders of funds) Where...
Primary dealers none of the listed answers are correct are small banks in the primary stage of development cannot trade securities directly with the Federal Reserve Bank trade securities directly with the Federal Reserve Bank The bid/ask spread is the price of that the dealer sells securities information liquidity demonination Which of the following would be most likely to use a financial market? A state government wishing to borrow to finance a highway project A small business wishing to borrow...
Which of the following functions of Financial Intermediaries is not shared by Food Intermediaries? O A. absorbing differences in timing OB. absorbing differences in quantity C. specializing in information OD. repacking products E. diversifying default risks
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