Eight basic facts about the global financial system.

Question

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Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

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Answer 2

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

Answer 6

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

Answer 7

Chapter 8, Problem 1LO

To determine

Eight basic facts about the global financial system.

Answer 8

Expert Solution & Answer

Explanation of Solution

The basic external source of financing around the world is not equity.
The businesses do not prefer much financing through marketable securities either in debt or equity.
Financial intermediaries or indirect finance is a more important source of finance than direct finance where the funds are raised directly from lenders.
One of the most heavily regulated sector of the economy is the financial system because the economic growth depends on their stability.
The most important source of external funds for the businesses is the financial intermediaries, particularly banks.
Only the large corporations have access to securities market to finance their businesses because small investors may find such investments costly.
Collateral is a very significant feature of a debt contract for both the borrowers and the lenders.
Debt contracts are large and complicated documents with many provisions and restrictions on the behavior of the borrower.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept Introduction:

The global financial system is the financial structure in various countries and regions around the world. It mainly consists the methods and sources which different business entities use to obtain external funds. The methods of finance are usually debt, equity, or a mix of both.

The source for debt funds is the bond market and for equity, its security market. Although the financial system may be different in different countries due to their prevailing policies, market conditions, business processes, etc. there are some facts that are common to all these financial structures.

Frederic Mishkin, an American economist, observed the global financial system from a period of 1970 to 1996. He used these observations to determine eight facts about the global financial system.

Answer 12

Ch. 8 - Prob. 1LO Ch. 8 - Prob. 2LO Ch. 8 - Prob. 3LO Ch. 8 - Prob. 4LO Ch. 8 - Prob. 5LO Ch. 8 - Prob. 6LO Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q

Eight basic facts about the global financial system.

Eight basic facts about the global financial system.

Explanation of Solution

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Chapter 8 Solutions