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A: Mutual funds are pool of money created by voluntary contribution by people, this money is often…
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A: Individual J decides to purchase Long-term Treasury bond or share of a stock from DJIA. Either of…
Q: n't skip. 4 Suppose that a bank has a leverage ratio of 25. In this case, the bank will be…
A: Leverage ratio is important for banks as it helps them keep a record of the capital that is…
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A: Financial intermediaries give a center ground between two gatherings in any monetary exchange. A…
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A: The liquidity of assets indicates the time taken by an assets to convert in the cash. If an asset…
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A: securitization is the act of pooling together different sorts of obligation instruments (resources,…
Q: Explain the uses of financial instruments
A: Money has been used since ages. Many years ago there was barter system in which goods were exchanged…
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A: a. Less willing; As given, that the income decreased and the liabilities increased, which means…
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A: Asymmetric information is a situation the information possessed by the parties is not symmetric. In…
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A: Bonds are a kind of debt security that is issued by the borrower to the lender in exchange for…
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A: Adverse selection- Adverse selection usually refers to a condition in which sellers have information…
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A: Definition of Liquidity Ratio- A liquidity ratio is a type of financial ratio used to determine the…
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A: Yes, this would be considered as a big fail because deposits in one bank would lead to monopoly of a…
Q: Why are companies' liquidity ratios calculated and which assets are more liquid?
A: Liquidity ratio: It is a type of financial ratio.
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A: Caisse populaire describes a co-operative member owned financial institution.
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A: "The Market for Lemons: Quality Uncertainty and the Market Mechanism" is a well-known 1970 paper by…
Q: What are the seveb major types of financial institutions as of today?
A: Financial Institutions Financial institution refers to the institutes which provide the services…
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A: Leverage ratio: The leverage ratio is the ratio of the bank's total assets to the total capital of…
Q: What would happen if the us treasury department stopped issuing new securities?
A: Although rare, especially in the case of US Treasury securities, such a situation might have…
Q: 3. What are the different types or kinds of financial markets (include definition)?
A: Financial markets refers to any market place where the trading of the securities and smooth…
Q: Why is it that the name of the buyer of a bond in the primary market is not written on the face of…
A: Primary market: The primary market is the marketplace for investors to purchase securities. In this…
Q: 25. In this case, the bank will be insolvent (bankrupt) if the value of its assets decreases by more…
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Q: The following is the financial legislation that separated operation of Banking from the Securities…
A: Banking Act (Glass- Steagall Act) of 1933 effectively introduced commercial banking reforms and…
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A: The Federal Reserve System was established in 1913 as the central bank for the United States of…
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A: Internal ratings-based credit risk permits banks, with regulatory authority, to model their own…
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A: Those financial instruments whose price is determined by the value of another asset are termed as…
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A: A security exchange is an exchange where the various the stock issuers and buyers can buy and sell…
Q: Suppose an investment bank is buying $100 million in long-term mortgage-backed securities and…
A: A leverage magnitude relation is one among varied monetary metrics that assesses a company's…
Q: 4. Which of the following is most likely a financial security? O a. Foreign currency O b. Insurance…
A: Financial security is a form of financial instrument that is issued for the purpose of raising…
Q: Which of the following assets is the most liquid? Cash. Real estate. Gold. Stocks
A: Anything which can be converted into the cash without losing its value is known as the liquid asset.…
Q: Why is there a need for companies like Standard and Poor’s and Moody’s to provide ratings (i.e. AAA,…
A: Adverse selection: - Adverse selection is a problem that arises because of the difference in the…
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A: Hi! thanks for the question but as per the guidelines, we can answer up to three parts at one time.…
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A: g) The Effective Annual Rate (EAR) is the pace of revenue really acquired on an investment or paid…
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A: A bank is a monetary foundation that acknowledges assets from the overall population and loans it…
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A: Competitive forces are the causes and characteristics that jeopardize a company's profitability and…
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A: Answer- Mortgage lenders often resell mortgages in secondary markets so The secondary mortgage…
Q: Are near money's highly liquid financial assets or many financial asset?
A: Near money is a financial economics term describing non-cash assets that are highly liquid, such as…
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A: Asset market bubble happens when market prices in some sectors increase over time and traded for…
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A: The commercial banks financial institutions that accept the deposits from the people and lend money…
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- If the president of a bank told you that the bank wasso well run that it has never had to call in loans, sellsecurities, or borrow as a result of a deposit outflow,would you be willing to buy stock in that bank? Whyor why not?n the Middle Ages, goldsmiths took in customers’ deposits (gold coins) and issued receipts that functioned much like checks do today. People used the receipts as a medium of exchange. Goldsmiths also issued loans by writing additional receipts against which they were holding no gold to borrowers. Were goldsmiths engaging in fractional reserve banking? Why do you think that customers turned their gold over to goldsmiths? Who benefited from the goldsmiths’ action? Why did such a system generally work? When would it have been likely to fail?4. Which of the following is most likely a financial security? a. Foreign currency O b. Insurance plan c. Commodities d. Preferred share O e. None of the above
- The First Bank nf the United States had characteristics that ditfer from those of the modern central barik of the United States Which of the following is one such characteristic of the First Bank of the United States? O The First Bank of the United States was issued an indefinite charter. O The First Bank of the United States was partially owned by foreign investors O The First Bank of the United States featured little cormuption. O The First Bank of the United Stafes printed al of the nation's currencyWhich of the following is not an advantage of Foreign Banks? O a. Heightened profit volatility O b. Less political volatility O c. Increased efficiency O d. Lower interest rates offered to the publicBriefly explain how banks can optimize their position through managing their use of commodities?
- In what way might consumer protection regulationsnegatively affect a financial intermediary’s profits?Can you think of a positive effect of such regulationson profits?Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)What is the big problem with the anonymity of cryptocurrencies/Bitcoin? What is the concerns regarding money laundering and the anonymity of cryptocurrencies?