What is a rally?

Q: what is meant by “The money market is necessary but not sufficient for the liquidity of securities…

A: Solution- The money market is an organized exchange market where participants can lend and borrow…

Q: Which of these has the biggest potential risk area? O a. Cash Machines O b. Mobile Banking O c.…

A: A cash machine can be defined as a machine that dispenses cash to the users by inserting a card;…

Q: Which of the following is not a Money Market Instrument? a. Commercial Paper b. Debentures c.…

A: Money market is related to short term debt instruments and not long term debt instruments.

Q: 17) Which one of the following is NOT a 'Money Market Instrument'? Select one: O a. Treasury Bills O…

A: Financial instruments which are have expiry of less than 1 year, are categories as money market…

Q: Which of the following is a constrain for the investors? a. The mentality tontake the high risk b.…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: To trade on the stock exchange what is

A: There are trading of shares on stock exchanges. Buyers and Sellers meet to sell and purchase shares.

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: Which one of the following is not a money market instrument?  A.     Treasury bill  B.…

A: Money market instruments are investment securities having a maturity life less than one year. These…

Q: a. "Financial intermediaries play a crucial role in an economic crisis-they are responsible for both…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: What is the money market (include in your answer the characteristics of the money market and the…

A: Financial Market is a place/mechanism which facilitates exchange of financial assets between holders…

Q: Which of the following is higher risk? a. Stock market index mutual fund. b. Bond mutual fund c.…

A: A risky investment is an investment that has a higher potential for loss, as compared to other…

Q: Which of the following is not a money market instrument? a. Equity Shares b. Treasury Bills c.…

A: Money market instrument means those instrument which are issued in money market and generally for…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: What is the primary motivation of investors in performing security analysis? A-identify the best…

A: Analysis of tradable financial market securities is called as security analysis. Here the proper…

Q: Why are stock markets the most watched and reported of the financial security markets?

A: Financial markets- It refers to a marketplace that provides an avenue for the sale and purchase of…

Q: What are the risk associated with banking activities?

A: Bank's major activity involves collection of funds and lending credit. These activities involve huge…

Q: Which of the following is not a Money Market Instruments? a. Corporate Bonds b. Bankers’ Acceptance…

A: Answer shares and bonds having maturity of more than one year are not considered as money market…

Q: How can you protect yourself from fraud should you decide in the future to invest in stocks?

A: A stock exchange is a marketplace for the purchase and sale of stocks. However, when brokers,…

Q: a. “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which is better to invest money in stock market, bond market or cds and why

A: A person saves money earned by him or her.   Part of this savings are invested in a financial asset…

Q: Which one of the following is not a money market instrument? a. Equity Shares b. Bankers'…

A: money market instruments are short term liquid instruments which are highly liquid.

Q: What does this implyabout detecting bubbles in the stock market?

A: Bubbles in stock market means when the prices of all the stocks exceed its fundamental value by a…

Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.