Financial intermediaries increase an economy's efficiency in a number of ways. d. Which of the following is not a financial intermediary? Another common example is an insurance policy that transfers risk from the insured (a homeowner) to the insurer (the insurance company). 1. 7) Which of the following is NOT an ADVANTAGE of a partnership? The cash records of Downs Company show the following. First week only $4.99! What To Put in Your Self-Directed Roth IRA. 5) The ________ removed the removed the last segments of Federal law that separated investment banking activities from commercial banking activities. On the other hand, in derivative markets, parties and counterparties make agreements that are settled at a later date. 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). Other types from the insurance sector include property insurance companies, private life insurance organizations, and government insurances. Which one of the following is not a financial intermediary? A high school basketball player decides to bypass college and go right into the NBA, (the National Basketball Association). Explain. A. The four candidates have the education indicated in the table. Candidate B Yes, banks function as intermediaries connecting lenders and borrowers. Do vertically integrate. An investment bank Which of the following is not a financial intermediary? Which of the following statements is true? They can be banking or non-banking institutes owned by the government or private entities. buying renters insurance a credit card purchase They all involve an intermediary buying stock online; Question: Which of The obtaining of a car loan is a primary market transaction since the loan represents a newly-issued instrument by the bank. A pension fund 2. That is not the case with Standard & Poor's. A) To help establish terms of the lending/borrowing agreement B) To match the A. other managers Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, **Find the sum or difference. Describe the risk the individual is taking and a contract that might transfer the risk. Please solve the following questions 1. It is a platform that is provided by Amazon, Q:Which of the following functions is NOT performed by channel members? The primary use of derivative contracts is: Considering the value of a financial instrument, the bigger the size of the promised payment the: Considering the value of a financial instrument, the sooner the promised payment is made: Considering the value of a financial instrument, the more likely it is the payment will be made: Considering the value of a financial instrument, the circumstances under which the payment is to be made influence the value because: The fundamental characteristics influencing the value of a financial instrument include each of the following except: The value of a financial instrument rises as: Consider the price paid for debt issued by the State of California. (Leave no cells blank - be. Insurance companies collect premiums for policies and provide policy benefits. Why didn't the over-the-counter (OTC) exchanges suffer the disruption of service that the New York Stock Exchange did after the terrorist attacks of September 11, 2001? 21) Which of the following is not a financial intermediary? A person or business that is prepared and willing to purchase a security for their own Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. O a. they centralize function. c. investing Leasing is an arrangement in which the asset's right is transferred to another person without transferring the ownership. Stock exchange refers to a market that facilitates the buying and selling of listed securities such as public company stocks, exchange-traded funds, debt instruments, options, etc., as per the standard regulations and guidelinesfor instance, NYSE and NASDAQ. Most financial instruments are complex in the sense that many possible contingencies are identified and both buyer and seller want to avoid problems that can arise from unforeseen events. This defensive strategy involves the sale, A:Divestiture is said to be if the company sells some of its assets for accomplishing and achieving a, Q:What are some of the competitive advantages that Vivobarefoot has achieved as a result of the, A:Competition is an inevitable part of business as there are many firms in an industry that has common, Q:ABC company delays replying to customers queries and loosing customers due to this reason. While most investors would not or could not take the risk of making a home mortgage directly, they can purchase these securities and enjoy the higher return offered by home mortgages with less risk than would be the case if they made a home mortgage directly. A stock exchange This will prove counterproductive as falling asset prices will mean more losses, diminishing their net worth still more, raising leverage and making the assets they hold seem riskier, compelling further sales, and so on. Cloud, Q:Wholesaling is often thought of as a less glamorous intermediary venture when compared with other, Q:Most effective utilization of finances comes under The intermediary may provide factoring, leasing, insurance plans, or other financial |---|---|---|---| The individual could ask for the majority of his first contract to be in a guaranteed upfront payment which can then be used to purchase an annuity to provide income for the rest of his life. The life insurance policy is a contract that transfers risk from the buyer to the seller, in this case from the individual to the company. D).A physical location auction market. Information Technology, What can be used to facilitate the exchange of data between business partners (such as for purchase orders and invoices)? a.Manufacturing, A:A) Manufacturing Non-Banking Financial Companies (NBFCs) Question 1: Non-Banking Financial Companies (NBFCs) are the Financial Intermediaries engaged primarily in the business of i. James Chen, CMT is an expert trader, investment adviser, and global market strategist. -none of the options overseeing day-to-day operations and ***Instructions*** 1) A ________ is a business that is owned entirely by an individual. In either of these two cases, Novus will seek out an investment bank to serve as an underwriter (to bring the shares from the primary to the secondary market). If Novus goes to a bank for a loan, it will make regular payments that include interest (and possibly parts of the principal amount owed), similar to a bond issue. If you are a rational wealth maximizing investor, which annuity would you choose? 13) Which of the following is a reason why an expertise in international finance is important? The over-the-counter market. The D)Managed funds. Once issued however, the ability of the bank to obtain further information and monitor the behavior of the individual is limited and before the card issuer can respond the cardholder can incur significant debt. bachelors degree, medical school degree For example, the banks accepting deposits from customers and lending them to the customers who need money exemplifies the basic financial intermediation process. Any information that places the issuer in a more favorable light would have the opposite effect. 1) When there are conflicts among managerial goals in U.S. markets, the most important priority is to ________. a. The intermediary may provide factoring, leasing, insurance plans, or other financial services. 1) Which of the following best identifies the four main areas of finance? 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. Intermediaries can provide leasing or factoring services, but do not accept deposits from the public. b. Financial intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and economies of scale involved in banking and asset management. The intermediary definition may vary by country and change as time passes. These intermediaries help create efficient markets and lower the cost of doing business. the amount of money that would have to be invested today at a given interest rate over a specific period in order to equal a future amount is called: the future value of a dollar ____ as the interest rate increases and ____ the farther an initial deposit is to be received, Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be. 3. 3)Which ofthe following arenot financial intermediaries? Discover how financial institutions can, Q:Which of the following is NOT considered a The New York Stock Exchange is a centralized exchange, meaning it is one physical location. Which of the following is a financial intermediary? A:Amazon web services is subsidiary company of amazon, amazon web services deals with web services and. Based on the type of services and products offered by the intermediaries, the complexity in their roles changes. In simple terms, it means giving the asset on hire or rent. A:Company data can be defined as the data of the company which consists of the details of the customer, Q:Telephone and direct-mail retailers: $$ A) Matching borrowers and lenders B) Bearing risk C) Managing retirement portfolios for large classes of employees D) All of the above are activities of financial intermediaries. Check out a sample Q&A here See Solution star_border Students whove seen this question also like: Understanding Business Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Q:Wllat are the three basic functions performed by intermediaries? What would you suggest to the CEO? Electronic operations have proven prone to errors that threaten the existence of brokers. 2003-2023 Chegg Inc. All rights reserved. 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