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How does the financial market facilitate corporate finance and investment management needed?

Which of the following can be described as involving direct finance? O A. People buy shares in a mutual fund. B. People buy shares of common stock in the primary markets. OC. A corporation buys a short-term corporate security in a secondary market. O D. A corporation takes out loans from a bank.

estions this section. Describe the role of mutual funds as financial intermediaries in the economy.

What are the three main types of markets for financial capital? The three main types of markets for financial capital are OA. bond markets, stock markets, and commercial banks OB. investment banks, commercial banks, and insurance companies OC. loan markets, bond markets, and commercial banks OD. loan markets, bond markets, and stock markets

Role of the component of the financial system is very important to ensure smooth flow of funds and financial system stability. Financial markets are mechanisms where those requiring finance (deficit units) can get connected with those able to supply it (surplus units) a) Critically evaluate the role of the components of the financial system. b) What are some of the characteristics associated with dividends paid on common stock? c) In what major ways do stocks differ from bonds?

a. Discuss the role of banks as financial institutions that fuel the economic growth of a nation.

In business finance the generally accepted corporate objective is: Group of answer choices maximization of market share. maximization of shareholders’ wealth maximization of capital employed. maximization of profit.

1 Which of the following is least likely to be a financial intermediary? A. Finance companies 8, Mutual funds C. Pension funds D. Investment banks E. Savings banks 2 Which of the following do not have corporate stock ownership? A. Commercial banks B. Savings and loan associations C. Savings banks D. Credit uniong O All of the above 3. A financial institution that raises funds by issuing shares to the public and invests the proceeds in a diversified portfolo for a management fee is: A. Banks B. Pension FundyC)Mutual Funds D. Financn companies E. None of the above - 4. One of the following types of financial instruments derive their value from other instruments (underlying assets) A. Cash instruments B. Equity instruments O Derivative instruments D. Debt instruments

Describe the role of mutual funds as financial intermediaries in the economy.

c) How would economic transactions between suppliers of funds (e.g., households) and users of funds (e.g., corporations) occur in a world without financial institutions?

Which of the following acts as an intermediary between the savers and investors by mobilising funds between them? a.Financial Markets b.Households c.Financial Instruments d.Government

a. “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both causing the market to crash and then helping it recover from the crisis.” Is this statement true? Discuss with an example. b. Discuss the role of banks as financial institutions that fuel the economic growth of a nation.