typing answer with explanation and conclusion Financial instruments with high information costs Select one: A. will have lower yields than U.S. Treasury securities. B. may not be offered for sale in some states. C. will have lower prices than similar instruments with low information costs. D. will usually be more liquid than similar instruments with low information costs

typing answer with explanation and conclusion Financial instruments with high information costs Select one: A. will have lower yields than U.S. Treasury securities. B. may not be offered for sale in some states. C. will have lower prices than similar instruments with low information costs. D. will usually be more liquid than similar instruments with low information costs

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 21RQ: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed...

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Financial intermediaries a.reduce the cost of financial transactions. b.provide safety of resources only for the large borrowing customers who can afford it. c.increase the cost of financial transactions but offset these higher costs by providing safekeeping of customer funds. d.provide handling of payments but usually less efficiently than other firms.
Allen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a busi- ness is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely.
1) The interest rate earned on a money market deposit account is generally higher than the interest earned on a Bank savings account. 2) What are short-term notes of debt issued by the federal government commonly called? A) T-Bills B) T-Notes C) T-Bonds D) T-Accounts E) None of the above are correct. 3) What is the name for comprehensive financial services packages offered by brokerage firms? A) asset management accounts B) comprehensive management accounts C) platinum management accounts D) consolidated management accounts E) None of the above are correct. 4) Money market mutual funds provide an alternative to traditional liquid investments offered by financial institutions. Advantages of MMMFs include which of the following? A) high interest rates B) check-writing privileges C) minimal risk D) convenience--deposits made through payroll deductions E) All of the above are correct. 5) A savings alternative that pays a fixed rate…
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34. Bankers have a reputation for conservatism in politics, dress, and business affairs. Is there an economic rationale for this conservatism? Explain.
Write a report highlighting how simulation methods can be embraced in banking sector
It is a form of guarantee given by a reputable bank. If the borrower defaults in paying, the investor has legal recourse to the bank. a. Repurchase agreement b. Banker acceptance c. Certificate of deposit d. Commercial paper
Find the attached file.
QUESTION 6 The benefit of establishing a long-term relationship with your banker is to: A. Reduce the likely of moral hazard B. Diminish problems with asymmetric information C. Improve loan terms for the customer D. All of the above
5. Please explain the pros and cons of using cryptocurrency in a country.