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What is the main function of financial markets? Who is usually better off in case of...
What is the main function of financial markets? Who is usually better off in case of well-functioning markets? Explain your answer. This is from financial markets and institutions 9th edition global end of chapter 2 Questions
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Answer:
Financial Market is defined as the commercial marketplace where the production and exchanging of financial assets, for example, shares, bonds, derivatives, debentures and others. It assumes an essential part in assigning limited resources, in the nation's economy. It goes about as a go between the investors and entrepreneurs by assembling capital between them.
The fundamental capacity of financial markets is to exchange the funds from the lender-savers to the borrower-spenders. Individuals from family units, business firms, governments, just as outsiders and their respective governments at times discovery with excess funds. This empowers them to loan money to the individuals who have a deficiency of funds and acquire an interest on it. Financial markets make it feasible for investors and banks to meet and cooperate, and when they function proficiently, they advance the economic welfare of everyone in society.
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Trade usually makes its participants better off. b) Identify an economist who agrees that in general...
Trade usually makes its participants better off.
b) Identify an economist who agrees that in general free trade
is a desirable way of organizing economic and social activity.
Identify another economic concept that this Economist supports.
Discuss how this economic concept can help you improve your life or
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What do you understand by structure of financial markets?
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The markets are usually a good way to organize economic
activity. In financial markets, this may mean that in some markets,
the interaction between supply and demand of loanable funds results
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bail, he/she may want to borrow money to be able to post the bail.
Given your understanding of the market for loanable funds, do you...
Trade usually makes its participants better off. a) Identify a local/global problem that might be caused...
Trade usually makes its participants better off.
a) Identify a local/global problem that might be caused by an
economic policy that is based on the belief that free trade usually
makes its participants better off.
Your answer needs to provide at least two paragraphs.
The first paragraph discusses the local/global problem.
The second paragraph explains how unregulated/free trade is causing
the problem.
b) Identify an economist (Adam Smith) who agrees
that in general free trade is a desirable way of...
Trade usually makes its participants better off. a) Identify a local/global problem that might be caused...
Trade usually makes its participants better off.
a) Identify a local/global problem that might be caused by an
economic policy that is based on the belief that free trade usually
makes its participants better off.
Your answer needs to provide at least two paragraphs.
The first paragraph discusses the local/global problem.
The second paragraph explains how unregulated/free trade is causing
the problem.
Answer all the questions in well developed paragraphs. The
paragraphs should be at least five or six sentences...
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Financial markets operate with varying degrees of efficiency.
What are the main ways in which the efficiency of financial markets
and instruments are defined? Which markets are most efficient?
Least efficient? Based on what measures? Why?
A, B, C, D. An employer is better off by hiring workers who are dedicated to...
A,
B, C, D. An employer is better off by hiring workers who are
dedicated to their employer in the long run. Separately answering
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methods that employers use to employ workers who will be committed
to their employer.
Usually, basic financial markets have five basic functions in a capitalistic economy: For each of the...
Usually, basic financial markets have five basic functions in a
capitalistic economy:
For each of the functions cited below, explain how financial
markets perform each function in detail.
They make it possible for corporations and governmental units to
raise capital.
They help to allocate capital toward productive uses.
They provide an opportunity for people to increase their savings
by investing in them.
They reveal investors’ judgments about the potential earning
capacity of corporations, thus
giving guidance to corporate managers. 5....
Usually, basic financial markets have five basic functions in a capitalistic economy: For each of the...
Usually, basic financial markets have five basic functions in a
capitalistic economy:
For each of the functions cited below, explain how financial
markets perform each function in detail.
They make it possible for corporations and governmental units to
raise capital.
They help to allocate capital toward productive uses.
They provide an opportunity for people to increase their savings
by investing in them.
They reveal investors’ judgments about the potential earning
capacity of corporations, thus
giving guidance to corporate managers. 5....
2. Explain why stocks are better suited for financial markets than financial intermediaries. 3. Give an...
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.
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