The following are correct statements about the composition of Financial Markets,EXCEPT:O Financial Transactions can be categorized as Direct Finance and Indirect Financetypes.OIndirect Finance occurs when a financial intermediary conducts the transactionbetween savers and borrowers.If a Commercial Bank uses money from depositors and lend the money to acorporation, that is considered Direct Finance.OIf a Corporation issues stocks and sells it to individual investors, that isconsidered Direct Finance.

To identify the correct statement about the composition of financial markets.

Answered: The following are correct statements…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Cash dividend O Stock dividend is made out of a firm's earnings. A stock dividend reduces corporate cash and retained earnings from profits reported in the income statement. O True O False
Assume that the government sets a binding price ceiling on the interest rate that banks charge on loans. Explain carefully the impact of this policy on the financial markets
What type of open market operation is expansionary? (Is it a purchase or sale of bonds?)
Extensions Help | Arial 1 Last edit was seconds ago 11 1 + BIUA ¹2' 3 C 田 5 6 1. What are 2 examples of variables that can have a correlation to the demand/forecast of a product your company makes? 2. What does it mean when we say we use the BOM to do an MRP MacBook Pro U = = == explosion? 3. Explain what do we call "Strategic Stock". Give an example of when this could be triggered I 7 12
Suppose instead Larry decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. O C The price of his shares will rise if NanoSpeck issues additional shares of stock. NanoSpeck earns revenue when Larry purchases 100 shares, even if he purchases them from an existing shareholder. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Larry's shares to decline.
Jefferson Midwest Trust has assets of $500,000 and liabilities of $400,000. Jefferson Midwest Trust's net worth is $100,000. O $400,000. O $900,000. O $500,000.
Qu. Suppose Telstra wins a government contract that would pay it the following amounts: $3 million in 2017, $6 million in 2018, $9 million in 2019, $10 million in 2020, $14 million in 2021 and $15 million in 2022. Some news reports described Telstra as having signed a $57 million contract with the government. Do you agree that $57 million was the value of this contract? Briefly explain. b. What was the present value of Telstra's contract at the time it was signed, assuming an interest rate of 10 per cent?
3.18 BOP Transactions. Identify the correct BOP ac-count for each of the following transactions: a.A German-based pension fund buys U.S. govern-ment 30-year bonds for its investment portfolio. b. Scandinavian Airlines System (SAS) buys jet fuel at Newark Airport for its flight to Copenhagen. c. Hong Kong students pay tuition to the University of California, Berkeley. d. The U.S. Air Force buys food in South Korea to supply its air crews. e. A Japanese auto company pays the salaries of its executives working for its U.S. subsidiaries. f. A U.S. tourist pays for a restaurant meal in Bangkok. g. A Colombian citizen smuggles cocaine into the United States, receives cash, and smuggles the dollars back into Colombia. h. A U.K. corporation purchases a euro-denomi-nated bond from an Italian MNE
O In the Secondary Markets securities are continuously resold. The following are correct statements about the concept of Money, and current forms of Money in the economy, EXCEPT: O Money is anything widely accepted as a medium of exchange. The most important quality of Money is its Liquidity. US Dollars are fiat money, and legal tender for USA transactions. Bitcoin is a new potential form of money that is limited in availability, and traded in a decentralized system.
5. On March 1, Bank extends a line of credit to Farmer. Farmer grants Bank a security interest in all "equipment and farm products, now owned or hereafter acquired." Bank properly files a financing statement on March 10, with the financing statement containing after-acquired language. 3 On October 1, Farmer approaches FinanceCo to request a loan for the purchase of a combine. FinanceCo agrees to make the loan and disburses the funds for the purchase directly to the equipment dealer. Farmer signs a security agreement granting FinanceCo a security interest in the combine. Farmer takes delivery of the combine on November 1. On November 26, FinanceCo properly files a financing statement describing the combine by brand, model, and serial number. Farmer subsequently defaults on his obligations to Bank and FinanceCo. Who has priority in the combine? 6. Assume similar facts as above, but that instead of filing a financing statement on November 26 FinanceCo files its financing statement on…
E3 The demand curve and supply curve for one-year discount bonds were estimated using the following equations: Bd Price=-2/5Quantity+990 Bs Price=Quantity+500 As the stock market continued to rise, the Federal Reserve felt the need to increase the interest rates. As a result, the new market interest rate increased to 19.65%, but the equilibrium quantity remained unchanged. What are the new demand and supply equations? Assume parallel shifts in the equations
26

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS