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

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What type of open market operation is expansionary? (Is it a purchase or sale of bonds?)
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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.
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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.
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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

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