What is a scheme that guarantees returns to investors but uses funds from new investors to pay returns to old investors called O Ponzi scheme O Fake charity scheme O Pyramid selling scheme O Pump-and-dump scheme

Q: What would happen to the standard of living if people lost faith in the safety of financial…

A: Financial institution is the institution which involve the financial activities such as investment,…

Q: What is shadow banking? What are the backstops in shadow banking and traditional banking? Please…

A: Shadow banking is unregulated where the lenders, creditors, brokers, and other financial…

Q: What are the possible arguments for setting up a firewall between investment banks and commercial…

A: At the time, improper banking activity–the overzealous commercial bank involvement in stock market…

Q: Why would so many people invest in a company like AFCO? What could investors have done to prevent…

A: The majority of people invest in companies like AFCO in order to get faster and more profitable…

Q: Why investors are willing to invest in high-tech firms instead of conventional financial sources?

A: Conventional financing is a scheme related to financing of home that is offered by financial…

Q: 2. Which of the following is NOT an example of the financial distress game? A) Cash in and Run B)…

A: Financial distress is conditions where firms feel problem in doing payments to suppliers and vendors…

Q: Why securitisation may be very beneficial for both institutions and investors ?

A: explanation Securitization is beneficial because it provides possibilities for investors while also…

Q: What is the worst that can happen if you invest your money?

A: Investors have different options to make investments, and the motive behind investments is to…

Q: Suppose your firm raises funds from outside lenders. What type of agency costs might occur? How…

A: Agency cost is the internal cost that arises internally within the firm. It can happen due to peer…

Q: What are hedge funds and how can unscrupulous businessmen use them cheat the public?

A: In the world of finance and investments, we often hear the words 'hedge funds'. A risk management…

Q: Financial markets promote economic efficiency by * A.channeling funds from investors to savers. B.…

A: Answer  -    The financial system performs the essential economic function of channeling the funds…

Q: What caused the Silicon Valley Bank failure SVB? explain

A: Silicon Valley Bank was founded in 1983 and this bank was the primary subsidiary of SVB Financial…

Q: you think that the pandemic has impacted the ability of firms to raise

A: Pandemic have impact on whole business scenario and financial conditions.

Q: How will investors get their money back?

A: An investor is a person who is involved in the allocation of capital with an expectation that he or…

Q: Are synthetic CDOs a legitimate business investment, or are they pure gambling? If the former, what…

A: Workplace ethics is concerned with how employees act in the workplace, as well as their morals and…

Q: ial Markets he

A: Help of financial markets : For the both private and public sector enterprises, the financial market…

Q: The financial markets play an important role in channeling funds from savers to borrowers. Which of…

A: Ans.(Option C) Investors deposit funds into interest-bearing accounts which are then loaned to…

Q: How do you think financial institutions help financial market to work?

A: fInancial institutions -The firms and organizations involved in the collection and distribution of…

Q: What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and…

A: Major flaws with NPV:Requires an assumption of discount rate which is not directly observable in the…

Q: 1) What id the essential purpose for financial markets? 2) Which is more important, the primary…

A: Financial markets serve the vital role of:Connecting buyers and sellers in the exchange of financial…

Q: Secondary Intermediaries are called as such because they depend heavily on other financial…

A: Answer: TRue

Q: Why are financial intermediaries a bigger and more important source of funds for investors than…

A: There are a lot of functions a financial intermediary generally performs . The most important is the…

Q: In order to earn money, how do financial institutions do it? What conditions restrict their ability…

A: Introduction: Financial markets are the exchanges on which financial assets and instruments are…

Types of Money Market Instruments