choose account subject The primary function of financial markets is to:A. facilitate the movement of cash from savers to companies thatneed money.B. ensure that interest and dividend payments are made tostockholders and bondholders.C. facilitate the payment for goods and services betweenproducers and consumers.D. financial markets perform all of these functions.

Financial Markets→ encompasses any marketplace where securities are traded.Financial markets are…

Answered: The primary function of financial…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process

Section: Chapter Questions

Problem 7Q

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Similar questions

One of the roles of financial markets is to: O A. conduct fiscal policy. O B. transfer funds from lenders to borrowers. OC. record statistics for official use.
What is Qualitative Asset transformation (QAT) and how does it facilitate financial intermediation through the banks?
Explain banks' motivation for engaging in the securitization of balance sheet assets, and analyse the costs and benefits of this process.
Which function of a financial intermediary reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings? Select one: a. Administration of the payments mechanism b. Information production services. c. Money supply management. d. Asset transformation services. e. Brokerage services.
Describe todays financial services marketplace, both depository and nondepository financial institutions.
Explain how banks can successfully undertake their role as financial intermediaries in the financial system. What benefits does the existence of banking financial intermediaries provide to end-users and society as a whole? Discuss.
Please answer the following multiple choice question: In the Intermediation Approach, bank uses: a) Capital and Labour to produce loans and other earning assets. b) Capital, Labour and Deposits to produce loans and other earning assets c) Labour and Deposits to produce loans and other earning assets d) Deposits and Capital to produce loans and other earning assets
Discuss with examples why the money markets could be considered arguable as playing complementary roles with the banking and insurance institutions.
Choose from the following list of terms and phrases to best complete the following statements. a. Cash c. Outstanding check e. Cash over and short b. Cash equivalents d. Liquidity f. Voucher system 1. The category includes currency, coins, and deposits in bank accounts. 2. The term refers to a company’s ability to pay for its current liabilities. 3. The category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value will not greatly change.
Finance is a complex and multifaceted topic. at are two possible definitions of finance? A field that focuses on analyzing the stock market. A system that includes the circulation of money, the granting of credit, and investment decisions. A system whose primary function is to create value through the creation. of intangible assets. A field that studies and practices the management of money and investment decisions.
The U.S. financial system is composed of (1) policy makers, (2) amonetary system, (3) fi nancial institutions, and (4) financial markets.Indicate which of these components is associated with each of thefollowing roles. a. Accumulate and lend or invest savingsb. Create and transfer moneyc. Pass laws and set fi scal and monetary policiesd. Market and facilitate transfer of financial assets
Which of the following is defined as the level of capital that allows banks to sustain the potential losses arising from all current risks and to comply with an acceptable solvency level. a. Asset liquidity b. Capital adequacy c. Liquidity position of a bank d. Market liquidity

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