The life insurance policy is a contract that transfers risk from the buyer to the seller, in this case from the individual to the company. The person who gives the asset is Lessor, the person who takes the asset on rent is Lessee.read more, and insurances, etc. O a. A. D. Superannuation fund. Also, financial intermediaries lower the transaction costs of lending. Experts are tested by Chegg as specialists in their subject area. 4) The common objective of borrowing and lending is to ________. Security dealers B. 1) ________ are the forums where buyers and sellers of financial assets and commodities meet. Lets briefly describe some financial intermediary examples like banks, insurance companies, stock exchangesStock ExchangesStock exchange refers to a market that facilitates the buying and selling of listed securities such as public company stocks, exchange-traded funds, debt instruments, options, etc., as per the standard regulations and guidelinesfor instance, NYSE and NASDAQ.read more, mutual fundMutual FundA mutual fund is a professionally managed investment product in which a pool of money from a group of investors is invested across assets such as equities, bonds, etcread more companies, and credit unions. health insurance program . Describe how Novus can raise these funds directly through each of the follow options: issuing stock, issuing bonds, or obtaining a bank loan. If actual wheat prices do increase the baker will lose money on the actual baking operations but these losses will be offset by the profits he will earn on the wheat futures contract. No. C What evidence is there that the transaction costs involved with the buying and selling of stocks is low? bachelors degree, masters degree 7) Managing the firm's short-term financing activities is known as ________. c. investing (b) Would it be feasible to list the possible arrangements. Your professor borrows money at a rate of 8% from the same bank for a tuition loan for her son. Hello, the answer you are looking for is A. Expert Solution Want to see the full answer? Which of the following is not a financial intermediary? A)Stockbrokers. How should these findings be interpreted? What evidence, A:Various businesses are placing their confidence in 3PL companies to outsource information, Q:On the portfolio analysis, a firm You can specify conditions of storing and accessing cookies in your browser. 11) Double taxation refers to which of the following scenarios? c. Bank. To write a complete contract, however, would be very time consuming and expensive. 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Standardization of financial instruments has occurred as a result of: More detailed financial instruments tend to be: Many financial instruments are standardized because: A share of Ford Motor Company stock is an example of: A counterparty to a financial instrument is always the: The information concerning the issuer of a financial instrument: Asymmetric information in financial markets is a potential problem usually resulting from: Agencies exist which rate bonds based on characteristics of the borrower Such bond rating agencies are an example of a financial market response designed to: The better the information provided to financial markets the: Financial markets enable the transfer of risk by: A borrower has information that is not available to a prospective lender; this is an example of: The owner of a small business applies for a bank loan and tells the loan officer that the funds will be used to expand inventory for the upcoming holiday season. The correct option is B. 8) Financial assets that will mature within a year are bought and sold in the ________ market. These risks can be transferred through a few different types of contracts. The person who gives the asset is Lessor, the person who takes the asset on rent is Lessee.. the amount of money that would have to be invested today at a given interest rate over a specific period in order to equal a future amount is called: the future value of a dollar ____ as the interest rate increases and ____ the farther an initial deposit is to be received, Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be. Investopedia requires writers to use primary sources to support their work. The former dramatically lowered the importance of a physical location of an exchangeas new technology allowed the rapid low-cost transmission of orders across long distanceswhile the latter encouraged unprecedented cross-border mergers of exchanges, integrating larger pools of providers and users of funds. 6) Of the following which group would be considered EXTERNAL PLAYERS of the firm? d. Net assets approach. a week ago. 1) A financial instrument is a written legal obligation; (2) A financial instrument transfers something of value to another party; (3) A financial instrument specifies some future date for this transfer to occur; and (4) A financial instrument specifies certain conditions under which payment will be made. View this solution and millions of others when you join today! financial performance? b. They take the form of channel providing loans, mortgages, investment vehicles, leasingLeasingLeasing is an arrangement in which the asset's right is transferred to another person without transferring the ownership. Kristian should go Mary purchases a U.S. Treasury bond; the bond is a(n): Sue has a checking account at the First National Bank; her checking account is a(n): Financial instruments and money share which of the following characteristics? The program covers part of the O a. formulates a short-term marketing plan In what sense are both types of institutions financial intermediaries? Explain. Wha t is the amount of the deduction . Bank. 4) The problem of motivating one party to act in the best interest of another party is known as the ________. The New York Stock Exchange is a centralized exchange, meaning it is one physical location. true or false: graphs, charts, and other types of visualizations is a component of many of the steps in the market analytics cycle. Financial intermediaries move funds from parties with excess capital to parties needing funds. O a. Research, A:Financial Management is one of the branches of general management which provides efficient and, A:Distributor refers to an agent who sells goods to the retailers. Which qualification would be most beneficial to a prospective doctor specializing in cancer treatment? Accepting Deposits ii. True 4. 5) Options are bought and sold in ________ markets. It provides a platform for sellersand buyers to interact and trade at a price determined by market forces. 13) ________ addresses the question of how to handle our day-to-day business needs. Stock exchange refers to a market that facilitates the buying and selling of listed securities such as public company stocks, exchange-traded funds, debt instruments, options, etc., as per the standard regulations and guidelinesfor instance, NYSE and NASDAQ. What is the primary distinction between debt/equity markets and derivative markets? Efforts to speed up electronic trading drain resources from more efficient uses. Electronic operations have proven prone to errors that threaten the existence of brokers. The June 30 bank reconciliation indicated that deposits in transit total $580. Find the solution that minimizes moving costs using Microsoft Excel. b. Which of the following is not true about financial markets? O a. they centralize function. As an example, on an average day billions of shares of stock may trade in the U.S. alone, and while most of these trades are undertaken using brokers, the fee the broker requires is usually a very small percentage of the overall value of the instruments traded. 1) ________ is the name given to the processes surrounding recognition of the principal-agent problem and ways to align agents with the interests of the principals. Trading in electronic exchanges has grown tremendously in recent years, what are some of the disadvantages of trading in decentralized electronic exchanges? Security dealers is not a financial intermediary. The market for equities (stocks) and debt (mainly bonds) are markets where the actual claims are purchased or sold for immediate cash payment. A. The team would likely go along with this if the annual compensation is reduced. They provide a wide array of products and services to cater to the diverse needs of the market participants. and why? g. Rule of 72 Select one: a. Superannuation fund. Describe the risk the individual is taking and a contract that might transfer the risk. Which of the following is not a financial intermediary? Manufacturing Which of the following is likely to be a primary financial market transaction? Money markets. 2) Of the following activities, which is NOT likely to be an interaction between the financial manager and the marketing manager? Start your trial now! A customer arrives and decides to order a birthday cake. Money flow (MF) refers to a mathematical function used to analyze changes in the value of a security by multiplying its typical price by daily trading volume. A commercial bank An insurance company A pension fund A stock exchange 2.Which entity below is a financial A) Venture capital funds B) Banking regulators Mutual funds D) Insurance companies This problem has been solved! Any information that places the issuer in a more favorable light would have the opposite effect. (a) In situation 1, what were the deposits in transit at July 31? What Is Decentralized Finance (DeFi) and How Does It Work? Green bonds are a type of bond that helps companies and governments finance environmentally friendly projects. a. debt refers to ownership interest in a corporation, most people prefer to receive money today rather than ten years from now because, receiving cash today enables one to take advantage of current investment opportunities. Check out a sample Q&A here See Solution star_border Students whove seen this question also like: Understanding Business The change in (or momentum of) economic growth and creativity and de Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, **Find the sum or difference. This is due to the fact that they do not function as a middleman, but rather put rules on banks in order to forward the aims An insurance company C. The New York Stock Exchange D. A mutual fund C Mary purchases a U.S. Treasury bond; the And this all are the examples of the same. None of the above. A homeowner Oc. 6) ________ addresses the question of where we raise money to finance our business activities. Cash Flow vs. Asset-Based Business Lending: Whats the Difference? Explain how a bread maker can use a financial instrument to transfer the following risk: the bread maker has the opportunity to provide bread to a local army base. What Are the 9 Major Types of Financial Institutions? d. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular O b., A:Answer b) Manufacturing a. diversification have real trouble selling because they only target the really, A:The telephone and direct mail retailer is the type retailing where the organisation sends the, Q:Closeout stores are owned by the manufacturer or retailer 5) Which of the following is NOT a function of a financial intermediary in the lending/borrowing process? An example of secondary intermediaries is factoring companies. Login details for this Free course will be emailed to you. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. , he increase in his patient base. 21) Which of the following is not a financial intermediary? It transferred the risk of volatile wheat prices from the baker, who otherwise wouldn't accept the opportunity to provide bread at a guaranteed price for a year, to someone who was more willing to accept this risk. A Q:Wllat are the three basic functions performed by intermediaries? Debt instruments that have maturities less than one year are traded in the: Money markets are where trades occur for: Countries that lack well-defined property laws and legal structures: An insurance company is an example of a financial institution that: All of the following are depository institutions, except: Which of the following are depository institutions? A. A) Matching borrowers and lenders B) Bearing risk C) Managing retirement portfolios for large classes of employees D) All of the above are activities of financial intermediaries. 4) Of the following which group would be considered INTERNAL PLAYERS of the firm? While financial instruments can function as a means of payment and a store of value, similar to money, one function that can make them very different from money is their ability to transfer risk between buyer and seller. b. Loans, equity, guarantees, and other financial instruments attract greater public and private funding sources that may be reinvested over many cycles as compared to receiving grants. You can learn more about the standards we follow in producing accurate, unbiased content in our. Explain how the introduction of asset-backed securities has allowed investors to take advantage of higher returns from loans that most investors could never make on their own. Which of the following (if any) are not financial intermediaries? Suppose that an internet-based program, Novus, wants to raise $10 million to expand its business operations. "Commission Launches Two New Financial Instruments to Boost Investment in Start-Ups and Sustainable Urban Development.". A collateralized debt obligation (CDO) is a complex financial product backed by a pool of loans and other assets and sold to institutional investors. Q:32) De Cenzo, Which of the following is not a financial intermediary? The intermediary may provide factoring, leasing, insurance plans, or other financial Consider a typical individual who owns the following financial instruments: A life insurance policy for $250,000; a certificate of deposit for $10,000; homeowner's and auto insurance policies; $50,000 in a mutual fund, and $150,000 in her pension fund at work. This means that they mainly recommend products that they either offer themselves or receive a commission from other providers. 10) The form of business organization in the United States that has the greatest amount of capital is ________. The June 30 bank reconciliation also reported outstanding checks of$940. If possible brainliest please. 9) The sale of "new" securities,where the financial asset is being traded for the very first time, is said to take place in the ________ market. 12) Which of the following is true of a dealer market? It connects entities with surplus funds and deficit funds. A bank B. Which of the following is not a financial intermediary?Select one:a. Superannuation fund.b. Leasing is an arrangement in which the asset's right is transferred to another person without transferring the ownership. money and other valuables belonging to an individual or business Intermediaries protect customers deposits, stimulate money flow in the economy and subsequent economic development. Added 3/28/2021 6:41:22 PM. 5) A ________ is a business that is jointly owned by two or more individuals. Financial intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and economies of scale involved in banking and asset management. Banks connect borrowers and lenders by providing capital from other financial institutions and from the Federal Reserve. A) To help establish terms of the lending/borrowing agreement B) To match the Which of the following is not a financial intermediary? Which of the following is not a financial intermediary? The process creates efficient markets and lowers the cost of conducting business. He needs to hire a second Chiropractor, a Massage Therapist, a Physical Therapist, and a Medical Secretary. The cost of an untimely death or loss resulting from an auto accident or damage to her house is a risk the individual prefers to transfer to someone else. Why are options referred to as derivative instruments? There were no bank debit or credit memoranda, and no errors were made by either the bank or Downs Company. 6) Which of the following is NOT a DISADVANTAGE of a partnership? What are the four characteristics of a financial instrument? Capital Structure is the composition of companys sources of funds, which is a mix of owners capital (equity) and loan (debt) from outsiders and is used to finance its overall operations and investment activities. 3) Which of the following is NOT a feature of the Sarbanes-Oxley Act? a.) 5) ________ is the area of finance concerned with activities like repayment of borrowed funds through dividends or interest payments. The primary intermediary entities collect their funds from households, business enterprises, or governments and provide loan services to the same groups. 2) ________ is NOT a main category of financial management. The assets of a typical commercial bank include A. commercial loans B. demand deposits C. common stock D. equity 29. Customers can see the orders, the orders are executed quickly, trading occurs 24 hours a day, and costs are low. d. Power distance LifeTyme Publishers Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. Do not integrate. high school degree The over-the-counter market. If you are a rational wealth maximizing investor, which annuity would you choose? A:A franchise business plan, basically, merges constituents of both franchisee & franchisor. If an individual had certainty regarding his/her life expectancy he/she could plan accordingly and set up a budget that would exhaust his/her wealth at the time of death. The OTC exchange on the other hand is electronic networks where each dealer is linked electronically to other dealers. We do not usually have such certainty and the risk is that we may live longer than we expect and could run out of funds before we die. Explain why an individual would want to purchase such a contract. D).A physical location auction market.
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