An insurance company Finally, the advent of multiple electronic exchanges and ECNs has not resulted in a single, integrated, and transparent U.S. stock market. Copyright 2023 . Investors ***Instructions*** A) Mutual fund B) Bank C) Stock exchange D) Insurance company Answer: C C ) stock exchange Diff: 1 Question Status: Previous Edition 18) Which of the following is NOT a key service provided by the financial system? Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Their services stimulate money flow in the economy and subsequent economic development. If, Q:a. 1) ________ is the area of business that deals with how a company conducts its business and implements controls to ensure proper procedures and ethical behavior. Which qualification would be most beneficial to a prospective doctor specializing in cancer treatment? The program covers part of the If Novus issues bonds, it must pay interest in regular payments. The funds flow through the intermediary which is acting as a "middleman." With an annuity the individual transfers this risk to a company (for a fee) who is pooling many of these individuals and with the "law of large numbers" is better equipped to take this risk. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 6) Of the following which group would be considered EXTERNAL PLAYERS of the firm? The intermediary definition may vary by country and change as time passes. Corporate valuation, Investment Banking, Accounting, CFA Calculation and others (Course Provider - EDUCBA), * Please provide your correct email id. 2) In agency theory, the owners of the business are referred to as ________, and the managers are referred to as ________. No. _______type of market faces the problem of becoming "Jack of all trades master of none" Select one: a. Superannuation fund. Banks connect borrowers and lenders by providing capital from other financial institutions and from the Federal Reserve. Financial intermediaries serve as middlemen for financial transactions, generally between banks or funds. The financial intermediation process is not restricted to third-party connecting lenders and borrowers. 9) Capital budgeting is best defined by which of the following questions? (b) Would it be feasible to list the possible arrangements. You can learn more about the standards we follow in producing accurate, unbiased content in our. buying renters insurance a credit card purchase They all involve an intermediary buying stock online; Question: Which of 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 What would you suggest to the CEO? vtalishathapar Security dealers are no financial intermediaries. A pension fund Insurance companies C. Real estate investment trusts D. Pension funds 2 See answers Credit cards usually charge higher rates of interest than most other forms of lending. How can a HCM platform provider benefits this company, 8.The ____ approach to determining a company's worth involves the cost to recreate the operating assets of the business. 2) What was she clear or unclear about ? These lower transaction costs allow resources to be used to increase the output of goods and services in the economy. Explain. Information Technology, What can be used to facilitate the exchange of data between business partners (such as for purchase orders and invoices)? He needs to hire a second Chiropractor, a Massage Therapist, a Physical Therapist, and a Medical Secretary. Another common example is an insurance policy that transfers risk from the insured (a homeowner) to the insurer (the insurance company). ** bachelors degree, medical school degree O a. Financial intermediaries create a favorable atmosphere and conduct financial transactions for their customers. That is not the case with Standard & Poor's. Using the inventory information given before, calculate the inventory turnover for the month of May. These include white papers, government data, original reporting, and interviews with industry experts. Lending loans and advances iii. Which one of the following is not a financial intermediary? Candidate A Group of answer choices: A financial intermediary is involved indirectly in a financial transaction. 2 billion 8) Financial assets that will mature within a year are bought and sold in the ________ market. The four fundamental characteristics that determine the value of a financial instrument are (1) The size of the payment that is promised; (2) When the promised payment is to be made; (3) the likelihood that the payment will be made; (4) The conditions under which the payment is to be made. You are free to use this image on your website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: Financial Intermediary (wallstreetmojo.com). Financial intermediaries typically offer a wide range of services and products, such as deposit accounts, loans, and retirement plans, which can help individuals achieve their financial goals. The business is done with the, Q:From the customers perspective, which is better: to buy through one channel or several channels?, A:A marketing channel is a mode using which a particular company approaches its target market for, Q:Which of the following is an example of a physical distribution intermediary? Explain why an individual would want to purchase such a contract. Yet microsecond gains in trading speed likely diminish the willingness of market makers to provide liquidity because they don't wish to be "picked off" by well-equipped HFTs. The risks the individual is taking are numerous; one, he may not be as talented as he thinks and does not perform as well as he thinks he will and his value decreases. Economic growth refers to an increase in the aggregated production and market value of economic commodities and services in an economy over a specific period. 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. Which of the following statements is true? 2) Of the following, which is NOT one of the four main areas of finance? Explain the various ways that financial intermediaries increase the efficiency of an economy. The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Security dealers. During the month of July, Downs Company books show that $17,500 of checks were issued, yet the bank statement showed that$16,400 of checks cleared the bank in July. (a) In how many ways could you arrange seven books on a shelf? e. permanent investments A non-bank financial intermediary such as a financial advisor is able to connect investors (those who have capital) to companies and organizations (those who need capital to operate their business). A stock exchange, 2.Which entity below is a financial intermediary? False In simple terms, it means giving the asset on hire or rent. Compare and contrast financial institutions that act as brokers to those that transform assets. 12) Which of the following is NOT a capital budgeting question? A) Investment banks B) The United States Treasury Department C) Hedge Funds D) Insurance companies E) Thrift institutions Financial institutions that transform assets collect deposits (and payments for insurance policies) to raise funds that are then loaned to borrowers/spenders. Describe the risk the individual is taking and a contract that might transfer the risk. 6) ________ is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds. When a financial instrument is new, say a newly issued U.S. Treasury bond, it is initially sold in a primary financial market. g. Rule of 72 bachelors degree, masters degree The life insurance policy, the homeowner and auto insurance policies are instruments being used to primarily transfer risk. The over-the-counter market. Capital maintenance approach |---|---|---|---| 2) Of the following, which is the most recent example of legislation passed by the federal government to deal with a major economic or highly visible corporate event? 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. If Novus issues stock, it is not obligated to pay dividends to its new stock holders, but if it doesn't it risks reducing the value of its stock. . Q:What are the basic types of 3PL firms, and which are in most prevalent use? 3) Before the customer leaves, what questions would you ask her in order to properly place the order? Collateralized Debt Obligation (CDOs): What It Is, How It Works, Equity Financing: What It Is, How It Works, Pros and Cons, Commission Launches Two New Financial Instruments to Boost Investment in Start-Ups and Sustainable Urban Development. Financial markets pool and communicate information about the issuers of financial instruments and summarize this information in the form of a price. Why has the pace of structural change in financial markets accelerated in recent years? A non-bank financial intermediary does not accept deposits from the general public. Clear my choice 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. During July, the general ledger account Cash shows deposits of$16,900, but the bank statement indicates that only $15,600 in deposits were received during the month. 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. The correct option is B. Fintech d. investing risk A. graphs the NPV at a variety of discount rates. D ) All of the above are activities of financial intermediaries . Question: 5) Which of the following are not financial intermediaries? For example, the banks accepting deposits from A), A:Channel Intermediaries -The purpose of channel intermediaries are to move products to consumers or. Unlike underlying instruments, such as stocks and bonds, derivatives are instruments where the value and the payoff of the instrument are derived from the behavior of the underlying asset. A commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. b.) The goal of the move is to profit by trading an instant faster than competitors when new information becomes available, such as a stock issuer's quarterly profit statement or the nation's monthly employment report. Candidate C Which of the following is not a financial intermediary? Analysts at Tabby Fur Storage predict that the net present value of a proposed new $10 million warehouse is $1 million. Security dealers B. D. Superannuation fund. 6) Currencies are bought and sold in ________ markets. Login details for this Free course will be emailed to you. As we saw in the chapter, some financial instruments are used primarily to transfer risk. These risks can be transferred through a few different types of contracts. The assets of a typical commercial bank include A. commercial loans B. demand deposits C. common stock D. equity 29. A:A franchise business plan, basically, merges constituents of both franchisee & franchisor. Wha t is the amount of the deduction . The New York Stock Exchange (NYSE) originated as: Which of the following is not true of over-the-counter markets? Example: A:e-commerceis the sale and purchase of the products online . Wealth refers to the overall value of assets, including tangible, intangible, and financial, accumulated by an individual, business, organization, or nation. In a nutshell, it is distinguished as bank and nonbank intermediaries. The OTC exchange on the other hand is electronic networks where each dealer is linked electronically to other dealers. Matching Americans today charge over __________ a year on their credit cards. Q:Conclude about the sharing information system and related to Maybank or any suitable companies. B. Stephen P. Robbins, Mary A. Coulter, David A. 2. Select one: a. Superannuation fund. An institution that facilitates the channeling of funds between lenders and borrowers indirectly. 2) Which of the following is NOT an ADVANTAGE of a sole proprietorship? On the other hand, in derivative markets, parties and counterparties make agreements that are settled at a later date. c. Bank. , Kristian has a family and is very comfortable in his hometown. C. Market Which of the following is an advantage of the NPV technique for evaluating cash flows? Economic research has shown that there is strong positive correlation between financial market development and economic growth across countries. Cookies help us provide, protect and improve our products and services. The European Commission projected the total public and private resource investment at approximately 15 million (approximately $17.75 million) per small- and medium-sized enterprise. 11) Of the following, which is NOT an activity engaged in by a financial intermediary? Taking Risks And Making Profits Within The Dynamic Business Environment. Answer:Commercial business.Explanation:An institution that facilitates the channeling of funds between lenders and borrowers indirectly. What Is the Role of a Financial Intermediary?Financial Intermediary Definition. Simply put, a financial intermediary is an entity that helps connect people and institutions that need money with those that have money.Functions of Financial Intermediaries. There are numerous functions of financial intermediaries, depending on the type of institution. Examples of Financial Intermediaries. 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