Question

Provide brief answers for the following questions: a. What is indirect lending? b. Explain how secondary...

Provide brief answers for the following questions:

a. What is indirect lending?

b. Explain how secondary markets help facilitate capital formation (investment in real assets).

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) Indirect lending is done through intermediaries and loan supplier and loan taker don't share any relationship. The intermediaries manages risk and makes loan available . Dealers who sell cars request customers to go for indirect financing and don't have to bother about payments .However these indirect loans might have rate of interest.

b) Capital formation is the accumulation of assets like stock, equipment , machines ,etc. Secondary markets take deposits or money from savers or supplier of loans and provide them to the companies who utilize these loans for capital formation.

Please Discuss in case of Doubt

Best of Luck. God Bless
Please Rate Well

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
Provide brief answers to the following questions. Use specific situations and examples where applicable ( In...
Provide brief answers to the following questions. Use specific situations and examples where applicable ( In Your Own Words) Explain random numbers in sampling with specific example .
5. Answer the following questions and provide a brief explanation for each: How would lowering the...
5. Answer the following questions and provide a brief explanation for each: How would lowering the interest rate affect the future value of a single deposit made today? How would reducing the frequency of compounding affect the future value of an investment? How would raising the interest rate affect the present value of a fixed amount of money in the future?
Suppose that you are a risk manager in a bank. Provide answers to the following questions:...
Suppose that you are a risk manager in a bank. Provide answers to the following questions: What are the Principals (stakeholders) involved: Assets: Passible threats and vulnerabilities:
a,b and c are answers for previous questions! a) In 1949 at Q3 the real exports...
a,b and c are answers for previous questions! a) In 1949 at Q3 the real exports in the US were greater than imports, which the real exports were $7.754 billion. b) The real trade deficit in 1989 was $94.144 billion at Q3. c) The real trade deficit in 2017 was $653.924 billion at Q4 Now, the question is: After reviewing the real trade deficit compared to the real trade deficit when you were born, explain why or why you don’t...
Choose 2 of the following questions and give your answers: Based on the brief introduction, the...
Choose 2 of the following questions and give your answers: Based on the brief introduction, the example and explanation provided, the video clip, and your current knowledge of statistics, create a list of factors that you think might influence how a communicator, such as a newspaper reporter or television analyst, decides to present a set of statistics. Why are absolute numbers and percentages, when one is presented without the other, so often misleading? Compare the mean, mode, and median. When...
What are some real-world examples of markets that could be characterized as oligopolies Describe how investment...
What are some real-world examples of markets that could be characterized as oligopolies Describe how investment in human capital could help solve the poverty problem?
Short answer: Answer each of the questions in Section B. Answers should typically be no more...
Short answer: Answer each of the questions in Section B. Answers should typically be no more than 2-3 sentences in length. 1. Suppose domestic inflation is positive (? > 0), foreign inflation is zero (? ? = 0), and the central bank is operating a fixed exchange rate (%?e = 0). What, if anything, will happen to the real exchange rate? Be sure to explain in words what is going on. 2. In the context of the Solow model, explain...
Brief and one liner answers to the questions below: What are some reasons that people give...
Brief and one liner answers to the questions below: What are some reasons that people give for getting rid of performance appraisal? What appraisal intervals are often used in appraisal reviews? How might different countries’ cultures view performance appraisal? How might different countries’ cultures view performance appraisal? Define career. Why is it important for individuals to conduct career planning? What is the process of developing a strength/weakness balance sheet? Why is it important for a firm to conduct career development?...
Consider countries A and B with the same (unchanging) population. In country A, people devote 60%...
Consider countries A and B with the same (unchanging) population. In country A, people devote 60% of GDP to investment and the production function is Y=3√K, where Y denotes real GDP and K denotes the stock of physical capital. In country B, people devote 15% of GDP to investment and the production function is Y=5√K. a. Discuss the underlying intuition of the differences between countries A and B as described above (hint: there are two differences). b. Assume that both...
Please provide brief (one sentence) answers: a) The Mycoplasma chromosome codes for 500 genes, yet it...
Please provide brief (one sentence) answers: a) The Mycoplasma chromosome codes for 500 genes, yet it has about 20 promoters. Provide a brief explanation for how this is possible. b) How many seconds would it take the bacterial RNA polymerase to synthesize an mRNA of 5,000 bases? c) How many mistakes would the bacterial RNA polymerase make while synthesizing an mRNA of 30,000 bases? d) Sigma (?) protein by itself does not bind to promoter sites. Predict the effect on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT