1. One of the consideration in making investments which allows the investor to increase the value of its assets to offset increase in the level of prices. a. TAX SHELTER b. LIQUIDITY c. INFLATION HEDGE d. PROTECTION OF CAPITAL 2. It facilitate the flow of funds from the suppliers to the demanders in the financial market. * a. GOVERNMENT b. FINANCIAL INSTITUTION c. NET DEMANDERS OF FUNDS d. NET SUPPLIER OF FUNDS

1. One of the consideration in making investments which allows the investor to increase the value of its assets to offset increase in the level of prices. a. TAX SHELTER b. LIQUIDITY c. INFLATION HEDGE d. PROTECTION OF CAPITAL 2. It facilitate the flow of funds from the suppliers to the demanders in the financial market. * a. GOVERNMENT b. FINANCIAL INSTITUTION c. NET DEMANDERS OF FUNDS d. NET SUPPLIER OF FUNDS

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 3WNG

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The following are correct about financial intermediaries, EXCEPT? *A. Financial intermediaries are non-profit institutions which aims to help those in need of funds.B. None of the choices.C. Financial intermediaries collect interest rates from borrowers of funds.D. Financial intermediaries offer varying interest rates, and there is no such thing as a standard interest rate.E. Financial intermediaries conducts background to borrowers before granting loans.
Mr. John Dela Cruz, wanted to start investing in the stock market, which of the following financial intermediaries can help him? *A. BanksB. Pension Fund CompaniesC. Brokerage FirmsD. Insurance CompaniesE. Cooperatives
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What is a financial bubble in the context of asset markets? A. A situation where asset prices are stable and reflect intrinsic value B. A sudden and unsustainable increase in asset prices followed by a crash C. A government policy to regulate asset markets D. A situation where asset prices are controlled by a single entity
Which of the following is NOT TRUE about Financial Intermediaries? *A. Financial Intermediaries are institutions that serves as a bridge between the SSUs and DSUs.B. Financial Intermediaries makes the financial system more efficient.C. Financial Intermediaries earn profits through various transactions and services they offer.D. Financial Intermediaries offers investment advices.
Please discuss the following. 1. Financial markets are institutions and systems that facilitate transactions in all types of financial claims. 2. What is the importance of financial markets in a nation's economy? Discuss fully.
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#3. What is importance of financial markets for the productive capacity of the economy.?
What is a lender of last resort? O An institution, typically a financial institution, that can provide short term liquidity during a financial crisis. A firm that needs to borrow during crisis A group of lenders that need ot be paid immediately. A bank that has offices in resorts.
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