What are the financial functions carried out by financial markets in an effective financial system? a....
What are the financial functions carried out by financial markets in an effective financial system? a. Passing laws and setting fiscal and monetary policies b. Creating money and transferring money c. Accumulating savings and lending/investing savings d. Marketing financial assets and transferring financial assets
Homework Answers
The answer is option “C” - Accumulating savings and lending/investing savings.
Explanation: In an effective financial system financial markets helps in allocation of scarce financial and economic resources. It enables efficient allocation of funds along with financial stability. When accumulated savings are properly invested then capital and wealth is created and this propels the economy.
Add Answer to:
What are the financial functions carried out by financial
markets in an effective financial system? a....
Homework1 1.List the three financial system components and their financial functions in an effective financial system....
Homework1 1.List the three financial system components and their financial functions in an effective financial system. 2.Identify the four main types of financial markets. 3.Describe: money markets capital markets primary markets 4.secondary markets 4.Briefly describe the 2007-2008 financial crisis. 5. Identify the three functions of money. 6. Define or discuss briefly: a. Full-bodied money b. Representative full-bodied money c. Credit money ' d. Fiat money 7. Identify and briefly describe several types of money market securities. 8. Outline the various...
Homework1 1.List the three financial system components and their financial functions in an effective financial system....
Homework1 1.List the three financial system components and their financial functions in an effective financial system. 2.Identify the four main types of financial markets. 3.Describe: money markets capital markets primary markets 4.secondary markets 4.Briefly describe the 2007-2008 financial crisis. 5. Identify the three functions of money. 6. Define or discuss briefly: a. Full-bodied money b. Representative full-bodied money c. Credit money ' d. Fiat money 7. Identify and briefly describe several types of money market securities. 8. Outline the various...
What FUNCTIONS do Central Banks perform in a market-oriented economy? Explain why each function you have...
What FUNCTIONS do Central Banks perform in a market-oriented economy? Explain why each function you have listed is important in the functioning of a market-oriented economic system? Which of these functions is the most important? 1) a) What are the principal goals that Central Banks pursue as they work to carry out monetary policy? b) In what ways are commercial banks of special importance to the functioning of the money and capital markets and the economy? c) The name COMMERCIAL...
Money can be many things, but it is mor A. a financial liability B a financial...
Money can be many things, but it is mor A. a financial liability B a financial asset. C. liquid. D. illiquid The U.S. central bank (Fed) is a financial institution that A. has the sole right to accept deposits and make loans. B. has the sole right to issue currency. C. sets borrowing and lending in a country. D. determines what assets will back a currency. Which of the following is not one of the functions of money? A. Medium...
“Stages of development point out that financial development causes growth at the start of the modern...
“Stages of development point out that financial development causes growth at the start of the modern development, but once the financial system is established, it mainly follows the real sector” (Hugh Patrick, cited in Todaro and Smith, 2011, p. 730). (a) What is so important about the role of the financial system in economic development? Explain the six major functions that are important at the firm level and at the level of the economy as a whole? (b) Explain the...
. What are the “crowding-out effects” that limit the effectiveness of fiscal and monetary policy to...
. What are the “crowding-out effects” that limit the effectiveness of fiscal and monetary policy to stimulate the economy under the IS-LM mechanism? Specifically: a. How would the interest elasticities of the demand for investment and money affect the efficacy of fiscal vs. monetary policies? b. How would uncertainty about expected future taxes and regulations that increase labor costs to firms affect “autonomous” investments (the constant term in the investment demand function) and equilibrium output? c. How do financial regulations...
Ill. The Federal Reserve System A. Illustrate the primary role and functions of the Federal Reserve...
Ill. The Federal Reserve System A. Illustrate the primary role and functions of the Federal Reserve System using specific examples. For example, what are its key macro-activities and their economic consequences? B. Explain the operational mechanics of the Federal Reserve System in terms of its structures and governance using specific details. In other words, how does the system work on a day-to-day basis? C Illustrate the potential for the Federal Reserve's monetary policies to impact capital markets using specific examples....
20. An increase in the Bank rate will result in A. an increase in the money...
20. An increase in the Bank rate will result in A. an increase in the money supply. B. a decrease in the monetary base. C. an increase in the monetary base. D. no change in the monetary base. E. a depreciation of the Canadian dollar. 21. Among the numerous policies, the Bank of Canada has adopted to mitigate the impact of the Covid-19 outbreak; it has decided to "widen the collateral they accept to provide lending, and expanding the list...
1. True or False: Suppose there is a significant shock to global financial markets. As a...
1. True or False: Suppose there is a significant shock to global financial markets. As a result, there is a “flight to quality” – foreign investors flooded the US market with capital, investing in short-term government securities – T-bills3 primarily! This should lead to a DECREASE in US market interest rates. 2. True or False: The following argument is made as to the impact of baby boomers on financial markets. As the bulk of baby boomers approach retirement, there has...
Financial markets and the LM relation. a) Explain why the money demand curve is downward sloping...
Financial markets and the LM relation. a) Explain why the money demand curve is downward sloping and what b) What types of policies can the central bank implement to reduce the interest c) Define the velocity of money. What effect does an increase in interest rate d) Illustrate graphically the effect of a drop in nominal income on the money e) Illustrate graphically the effect of a purchase of bonds by the Federal Reserve factor(s) cause shifts in the money...
What FUNCTIONS do Central Banks perform in a market-oriented economy? Explain why each function you have listed is important in the functioning of a market-oriented economic system? Which of these functions is the most important? 1) a) What are the principal goals that Central Banks pursue as they work to carry out monetary policy? b) In what ways are commercial banks of special importance to the functioning of the money and capital markets and the economy? c) The name COMMERCIAL...
Money can be many things, but it is mor A. a financial liability B a financial asset. C. liquid. D. illiquid The U.S. central bank (Fed) is a financial institution that A. has the sole right to accept deposits and make loans. B. has the sole right to issue currency. C. sets borrowing and lending in a country. D. determines what assets will back a currency. Which of the following is not one of the functions of money? A. Medium...
Ill. The Federal Reserve System A. Illustrate the primary role and functions of the Federal Reserve System using specific examples. For example, what are its key macro-activities and their economic consequences? B. Explain the operational mechanics of the Federal Reserve System in terms of its structures and governance using specific details. In other words, how does the system work on a day-to-day basis? C Illustrate the potential for the Federal Reserve's monetary policies to impact capital markets using specific examples....
20. An increase in the Bank rate will result in A. an increase in the money supply. B. a decrease in the monetary base. C. an increase in the monetary base. D. no change in the monetary base. E. a depreciation of the Canadian dollar. 21. Among the numerous policies, the Bank of Canada has adopted to mitigate the impact of the Covid-19 outbreak; it has decided to "widen the collateral they accept to provide lending, and expanding the list...
Financial markets and the LM relation. a) Explain why the money demand curve is downward sloping and what b) What types of policies can the central bank implement to reduce the interest c) Define the velocity of money. What effect does an increase in interest rate d) Illustrate graphically the effect of a drop in nominal income on the money e) Illustrate graphically the effect of a purchase of bonds by the Federal Reserve factor(s) cause shifts in the money...
Most questions answered within 3 hours.
-
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 12 minutes ago -
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 34 minutes ago -
A horizontal mass of M=5kg is on a spring and stretched to
x=0.5m when released from...
asked 1 hour ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 2 hours ago -
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 2 hours ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 2 hours ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 2 hours ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 2 hours ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 2 hours ago -
Thermal Storage Solar heating of a house is much more efficient
if there is a way...
asked 2 hours ago -
Considering the “fits” for group and job design dimensions,
suppose you had 12 employees with different...
asked 2 hours ago -
Consider TCP connection management.
How many segments are typically involved in the TCP connection
establishment? What...
asked 3 hours ago