Question

1. Explain how the financial system makes both suppliers of capital and demanders of capital better...

1. Explain how the financial system makes both suppliers of capital and demanders of capital better off.
2. Explain why stocks are better suited for financial markets than financial intermediaries.
3. Give an example of a transaction that goes from the supplier to capital to the financial intermediary to the financial markets to the demander of capital.
4. Give an example of a money market security and capital market security.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. The financial system is very important for each country. It acts as a bridge through which suppliers of funds meets with demanders. Through the financial system, both party are better off. The individual supplier has saving but it is not good enough to fund any project of the company. So financial system combines all the individual savers and offer the consolidated funds to the company. In this way, savers are better off. Whereas the demanders of funds cannot go to each individual to ask for the funds. It is not convienent and cost ineffecive as well. So, through financial system, they are able to secure the funds. In this way, financial system helps both the parties.

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)What is the “price” commonly called in the labor market? 2)Are households demanders or suppliers in...
1)What is the “price” commonly called in the labor market? 2)Are households demanders or suppliers in the goods market? A) Demander B) what? C) Supplier D) none of the above 3)Are firms demanders or suppliers in the goods market? A) Supplier B) Demander 4)Are firms demanders or suppliers in the Labor market? A) None of above B) Supplier C) Demander 5)Are households demanders or suppliers in the Labor market? A) Supplier B) Demander 6)Which of the following would be factors...
10._____The maturity “cutoff” between money markets and capital markets is a. over night. b. one month....
10._____The maturity “cutoff” between money markets and capital markets is a. over night. b. one month. c. three months. d. one year. e. five years. 11._____Taylor buys 100 shares of Uber when Uber does its IPO. This transaction is necessarily an example of a a. good purchase. b. bad purchase. c. secondary market transaction. d. primary market transaction. e. good sale. 12.______Taylor sells 50 of the Uber shares to Thao. This transaction is necessarily an example of a a. good...
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...
1.As the manufacturer of small appliances, explain how you might plan to use both a push...
1.As the manufacturer of small appliances, explain how you might plan to use both a push strategy and a pull strategy. 2.Identify two stores at which you shop, one of which uses everyday low pricing and another than uses a high/low pricing strategy. Do you believe that each store's chosen strategy is appropriate for the type of merchandise it sells and the market of customers to whom it is appealing? Justify your answer. 3.Since you are taking this class you...
Read the article ‘How stocks test young investors’. When deciding how much to invest in stocks,...
Read the article ‘How stocks test young investors’. When deciding how much to invest in stocks, Mr Kitces says, your first consideration should be how comfortable you are with risk to begin with. This is what’s known as your ‘risk tolerance. ’ The problem: Investors — particularly young ones — are notoriously bad at predicting how much money they are willing to lose. Compounding the problem, young investors, due to their lack of experience in the markets and overall financial...
1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?
1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?This question is a real eye opener, in that with great risk can come great reward. The asset classes I can think of to present to me a zero-risk situation in the portfolio would be the following: Savings account, CD certificate, bonds, treasuries, and ponds. I expect to get minimal and low return on investment. Obviously the...
1.A) In abut 5 lines explain how associative methods of forecasting differ from Time series methods...
1.A) In abut 5 lines explain how associative methods of forecasting differ from Time series methods of forecasting. B) Which one would you use to explain how the demand for pork might affect the demand for beef? 2. What all does Hard Rock Cafe's Point of Sale (POS) system capture? At what level is the information aggregated? 3. A) In about 5 lines, discuss the key differences between Time Series method of forecasting and Qualitative Methods of forecasting. B) Name...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information...
Answer True or False: 1. Classification criteria for economic system include decision-making systems, mechanisms for information and coordination, incentive structures, property rights, and mechanisms for public choices. 2. All economic systems can be classified as market capitalism or centrally planned socialism. 3. Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while those of Central and Eastern Europe have done the best. 4. Capitalism relies primarily on material incentives, while planned socialism and...
can you give me short summary abstract and conclusion on chapters 1 and chapters 2 in...
can you give me short summary abstract and conclusion on chapters 1 and chapters 2 in Strategic Market Management, 9th Edition, by David A. Aaker As you said yu want more info, below is the info, can you please answer my question now. Management Tasks:Strategic Analysis ,Innovation,Multiple Business—Strategies and Issues,Creating SCAs,Developing Growth Platforms Business Strategy:The Product-Market Investment Strategy –    where to compet,The Customer Value Proposition,Assets and Competencies,Functional Strategies and Programs The Product-Market Investment Strategy-Invest to grow (or enter a product...
1-How important do you believe it is to be task-oriented and relationship-orientated? How would you describe...
1-How important do you believe it is to be task-oriented and relationship-orientated? How would you describe Musk? 2-Why do you think Musk is successful in overcoming obstacles and handling conflict? How do you overcome obstacles in influencing individuals in your life? 3-Besides the personality traits given in chapter 2, what other traits attribute to a great leader? Recognizing Your Traits The definition of intelligence is the ability to acquire and apply knowledge and skills. Elon Musk knew little about rockets...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT