Question

Explain why investment banks are not financial intermediaries

Explain why investment banks are not financial intermediaries

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Investment banks are not financial intermediaries because they do not offer with deposit facility and they also do not act as a link between borrowers and depositors because these are the functions of commercial banks.

Investment banks are generally associated with various kinds of investment related activities which could be done in order to maximize the return of its stakeholders and it is into other operations like underwriting and management of portfolios etc.

It is also not subjected to the banking rules and regulations so it is used as a investment vehicle rather than a commercial Bank, so it does not act as a link between the savers in the economy and the borrowers in the economy so it can be said that investment bankers are not a financial intermediary.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Explain how securities firms differ from investment banks. In what ways are they financial intermediaries?
1. Explain how securities firms differ from investment banks. In what ways are they financial intermediaries?
1. Banks and mutual funds are examples of financial intermediaries. (T/F) 2. If the federal government...
1. Banks and mutual funds are examples of financial intermediaries. (T/F) 2. If the federal government runs a budget deficit then public saving is negative. (T/F) 3. The financial system consists of the institutions that help to match one person’s saving with another person’s investment. (T/F)
which of the following statements are FALSE regarding financial intermediaries? 1. banks and credit unions are...
which of the following statements are FALSE regarding financial intermediaries? 1. banks and credit unions are financial intermediaries since they act as a middle man between households wanting to borrow and those wanting to lend 2. a financial advisor is a financial intermediary since he/she gives financial advice to households regarding saving for retirement 3. a stock broker acts as a financial intermediary by bringing together buyer and sellers of stock 4. insurance companies act as financial inter, by pooling...
Explain 3 functions of financial intermediaries
Explain 3 functions of financial intermediaries
Banks are financial intermediaries because they: a)hold all the money in the economic system in currency...
Banks are financial intermediaries because they: a)hold all the money in the economic system in currency form. b)print money as needed for borrowers whether business, individual, or government entities. c) accept deposits from businesses, individuals, and government entities. d) operate between a saver who deposits money and a borrower who seeks a loan. Multiple choices
4. Explain the “lemons problem” in terms of financial instruments and the role of financial intermediaries...
4. Explain the “lemons problem” in terms of financial instruments and the role of financial intermediaries in reducing this problem. You are NOT to answer this question referencing the automobile market.
“Financial system development lead economic growth “ List and explain TWO function of financial intermediaries on...
“Financial system development lead economic growth “ List and explain TWO function of financial intermediaries on economy?
Why has an increasing share of household savings been channelled through financial intermediaries? Hint: Comment on...
Why has an increasing share of household savings been channelled through financial intermediaries? Hint: Comment on the role of financial intermediaries
1) ____________ are examples of financial intermediaries. Select one: a. Commercial banks b. Insurance companies c....
1) ____________ are examples of financial intermediaries. Select one: a. Commercial banks b. Insurance companies c. Investment companies d. All of the above 2) True or False? In an efficient market, information is free. Select one: True False 3) If interest rates increase 3 percent and the average duration of a bank’s $100 million of assets is 4 years, the value of those assets will fall: Select one: a. $3.000.000 b. $4.000.000 c. $1.000.000 d. $12.000.000 4) True or False?...
Briefly discuss why it is necessary to have financial markets and financial intermediaries. (Hint: base your...
Briefly discuss why it is necessary to have financial markets and financial intermediaries. (Hint: base your answer on what we have discussed in class)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT