When a bank takes savings from many small savers and lends it to many borrowers, the bank a.increases the risk to borrowers through high transaction costs. b.decreases the return to savers and increases the cost to borrowers. c.decreases the risk to savers through diversification. d.decreases the risk to savers through economies of scale.

Q: A lender of last resort Select one: a. makes loans when no one else will. b. makes loans without…

A: Macroeconomic monitoring will continue to be important since it dictates the economy's eventual…

Q: By the interest rate on loans or approving loans with credit risk, a bank could expand its lending…

A: Commercial banks are the producer of money as they create money by providing credit facilities.…

Q: In economics, what does the term liquidity refer to? A. The ease with which an asset can be…

A: Liquidity is a key concept in financial matters and money, and it plays an essential part in the…

Q: Let's say that you have put $1,000 in your savings account at a local financial institution, and an…

A: The banks which deals with public(Known as commercial banks) are the financial institution whose…

Q: Financial institutions overcome the free-rider problem by O A. making large loans O B. purchasing…

A: Free rider problem in economics refers to taking the benefit of the resources without paying for it…

Q: To get a bank charter you need to demonstrate: (select all that apply)   A. That your community…

A: Bank charter is a charter that authorise the operation of a bank.

Q: based finance and Mudaraba finance, which one among the following sentences is false: a. Interest…

A: All of the above answer is correct because the difference between these two lies is the interest…

Q: How capital market in Oman playing its role in enhancing efficient financial intermediation? Explain…

A: *Answer:

Q: Some of the disadvantages associated with the advent of technology include: Question 15Answer a.…

A: The correct answer to the question about disadvantages associated with the advent of technology…

Q: n general, commercial banks receive their higher interest rates from   Group of answer choices a.…

A: Commercial banks pays small interest to savings accounts and generate larger or higher spread of…

Q: Which financial institutions are usually excluded from the definition of bank? Choose all that…

A: b. I and IV only.Credit union (I): Excluded.Mutual fund companies (IV): Excluded.This option is…

Q: according the concepts of Islamic finance and banking ,explain 2 ways that can raise enough capital…

A: Islamic finance and banking refer to how firms and individuals respond in accordance with Sharia or…

Q: define and explain the importance of lender of last resort

A: Answer: Definition: Lender of last resort: it is the institution (generally central bank of a…

Q: SECTION A: ANSWER ALL QUESTIONS 1. Financial intermediation is? A. Savers being matched with…

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

Q: Which of the following is not a primary participant in the financial marketplace? a.  governments b.…

A: A financial market is a place where stocks, bonds, and money are exchanged.

Q: 8

A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…

Q: Vol) 7.60 LTE KB/s 4G+ 11:46... pert.chegg.com + [1 Chegg Home Expert Q&A My solutions Student…

A: The objective of this question is to understand the process of money creation in the banking system…

Q: The supply of bonds comes from Select one: O A. Savers OB. Borrowers O C. Financial Intermediaries O…

A: A loan given by an investor to a borrower for a certain amount of time in exchange for consistent…

Q: If the interest rate is 10%, what is the present value of $25,000 received two years from now? A.…

A: Present value is a concept based on the time value of money which states that a sum of money today…

Q: Of the following, which can create an incentive for financial innovation? a. technological change…

A: Financial innovation and technological change can be aided by deregulation.   Deregulation is the…

Q: Crowding out occurs when   a. business profits are extremely high   b. government and private…

A: Under fiscal policy, the government alters its expenditures or taxation policy for the stabilization…

Q: Need answer ASAP... Abdul borrowed money from a company that keeps money for people. This source of…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: A bank can raise capital by a. selling long term bonds b. selling stocks c. attracting new…

A: Rising Capital: By linking businesses or organizations in need of finance with those who have excess…

Q: Which of the following statements is true?   a. A bank’s assets are its uses of funds   b. A…

A: A bank is an entity that acts as a financial intermediary to provide loans to investors and accept…

Q: 5. Dena won $1,000 at a bingo game. She deposits her $1,000 winning into a money market fund so…

A: Money is a commodity used in transactions for buying and selling of goods and services. There are…

Q: Assume an economy with three period lived individuals in which the rate of return on capital is X…

A: Utilizing a price differential between two or more marketplaces is the practice of arbitrage.When a…

Q: Salma receives $1,00 as a gift on her tenth birthday. She decides to invest it in a 5- year-CD whose…

A: Compound Interest = Interest on Principal + Compounded Interest at Regular Intervals  The self…

Q: Define financial system and then discuss the difference between financial markets and financial…

A: Financial assets refers to those intangible assets whose value can be determine through contractual…

Q: Do you believe credit is the life blood of the economy?

A: Credit is  the something in which a lender lends money, goods, or services to a borrower in exchange…

Q: 12.Comparing credit facilities by sector in Jordan in 2017, the highest credit facilities were going…

A: Credit Facility: The credit facility refers to the loan facility in the context of the business.…

Q: QUESTION 11 uppose that a new customer opens a checking account and a saving account, placing…

A: An asset is something of value that is owned or controlled by an individual, business, or entity.…

Q: The net interest margin of a bank is a function of A What they pay for wages and the revenue B Their…

A: The net earning margin refers to the difference between the interest which is paid and interest…

Q: MATCH 65. 66. 67. 68. 69. Claim on issuers future income or assets Connects savers with borrowers…

A: Monetary policy is the use of monetary tools by a central bank or other monetary authority to…

Q: 6. When you pay $12 for the pizza you ordered for dinner, you are using money as a (an):      unit…

A: Money has four function: 1. Medium of exchange 2. Store of value  3. Unit of account 4. Standard of…

Q: A mortgage where the borrower pays only interest during the construction phase and then rolled over…

A: The answer is - B. Construction to permanent Mortgages.

Q: Banks are more likely to play a role in financing requiring: Select one: a. Low credit risk. b. Very…

A: One of the primary function of banks is to provide loans and advances of various forms to it's…

Q: Why is it better to think of capital as physical items rather than simply money?

A: Production of goods and services occurs on a daily basis in any economy. Physical capital, often…

Q: Select TWO true statements. a.…

A: 1. All obligations are subtracted from assets to determine net value. Liabilities are obligations…

Q: Based on the image below think of an 1 year plan using all the boxes provided in the image give an…

A: The objective of this question is to create a comprehensive one-year financial plan using the…

Q: What is the optimal supply of money and how should it be maintained?

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: A financial firm that takes deposits from households and firms is Select one: O A. a central bank.…

A: A financial firm that takes deposits from households and firm is Select one A. A central bankB. A…

Q: Describe the paradox of savings. b. When do savings become a positive virtue and when does it…

A: The macroeconomic functions and activities include the major considerations and analysis through…

Q: When you pay $60 for the pizza you ordered for dinner, you are using money as a (an):      unit of…

A: Money refers to the medium of exchange and it allows people to get what they need to live.

Q: 1. What is the primary social function of the financial system? a. To direct financial capital to…

A: Q1 One of the essential social functions and objectives of the financial system in an economy is to…

Q: 2. Why does $100 In the future not have the same value as $100 today?

A: Time Value of Money is defined as the concept of money which states that the amount of money that we…

Q: The diagram below presents the supply and demand for loanable funds in the country of Portlandia.…

A: Reserve requirement refers to the percentage or proportion of total deposits which the commercial…

Q: Richie Rich has applied for a home equity loan. The bank on its part has estimated the market value…

A: Market value of Richie Rich's property =$750,000 Existing mortgage loan on Richie Rich's property…