Question

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)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It is important to have financial markets and financial intermediaries. The financial markets is a place where buying and selling of stocks and bonds take place. The financial intermediaries acts like a conduit between the lenders/savers and borrowers/spenders . They can provide better lending terms to the borrowers according to their credit risk . They offer liquidity, low interest rates and risk free investments to the investors. They reduce the risk of default and capital loss for the lender as 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
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
Discuss three roles of the Government in Financial Markets. In your discussion provide specific examples this...
Discuss three roles of the Government in Financial Markets. In your discussion provide specific examples this role within the Ghanaian context with appropriate references where necessary
1) Discuss “securitization” in the context of that in which a commercial (Hint: collateralized mortgage obligation...
1) Discuss “securitization” in the context of that in which a commercial (Hint: collateralized mortgage obligation circa 2006) and an investment bank may engage. What are two reasons—of many—why securitization likely occurs with financial intermediaries?
why is it necessary to have an excess of base (NaOH) in our measurements
why is it necessary to have an excess of base (NaOH) in our measurements
Discuss why the efficient market hypothesis does not hold in financial markets which are inherently unstable.
Discuss why the efficient market hypothesis does not hold in financial markets which are inherently unstable.
1. Discuss why financial markets are important to a healthy economy and how they contribute to...
1. Discuss why financial markets are important to a healthy economy and how they contribute to economic growth. 2. Assume that you recently graduated with a degree in finance and have just reported to work as an investment adviser at the brokerage firm of Smyth Barry & Co. Your first assignment is to explain the nature of the U.S. financial markets to Michelle Varga, a professional tennis player who recently came to the United States from Mexico. Varga is a...
Can someone explain briefly if the forward prices in the energy markets have upward biases and...
Can someone explain briefly if the forward prices in the energy markets have upward biases and why is that the case? (answer with an example would be much better, thx:) )
What is the closing process, and why is it necessary prior to preparing financial statements? Include...
What is the closing process, and why is it necessary prior to preparing financial statements? Include temporary and permanent accounts in your discussion. Consider using an example of a real company to discuss why the closing process is a necessary step in the accounting cycle. Participate in follow-up discussion by comparing the accounts
5. We know that financial markets have a high degree of information asymmetry. Without the participation...
5. We know that financial markets have a high degree of information asymmetry. Without the participation of financial intermediaries in financial market transactions: a. Information and transaction costs would be lower b. Transaction costs would be higher but information costs would be unchanged c. Information costs would be higher but transaction costs would be unchanged d. Information and transaction costs would be higher 7. Which of the following is not a function of the financial markets? a. Transfer funds across...
We have discussed Black Wednesday and the Asian financial crisis in class. The biggest reason for...
We have discussed Black Wednesday and the Asian financial crisis in class. The biggest reason for the events was a pegged currency. Why do you think that there still are countries with pegged currencies? Find one and explain why you think they still peg?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT