Explain the significance of sequence: money, financial securities, financial market, financial institutions, regulation, and central banks....

Explain the significance of sequence: money, financial securities, financial market, financial institutions, regulation, and central banks.

Who are the primary beneficiaries of financial regulation?

Expert Solution

Money: It is used for the trasaction between two or more party.

Financial Securities: It is used for the investing purpose so that can earn some return over the period.

Financial Market: It is place where trade happen for financial securities.

Financial Institutions: It is big financial companies who perform financial trasaction for the other investors and provided different financial services for successful financial transaction.

Regulations: It is guidelines formed by the regulatory bodies to maintain the financial market discipline so that no can cheat the investors, it also helps in reducing financial risk.

Central banks: It determine the monetary policy of country and make sure that economy is performing well. It also check the inflation so that it wont impact the growth.

Primary beneficiaries of financial regulations are investors because they are the one who are exposed in financial market.

jeff jeffy answered 2 years ago

How does financial institutions participate in money market?

describe the regulation process of financial institutions

a. Explain why money market securities are liquid assets while capital market securities are not.

1. Please explain, in detail, the following concepts: a. Explain why money market securities are liquid assets while capital market securities are not. b. How does financial intermediation affect the cost of conducting financial transactions? c. What are three ways finance professionals use duration analysis? d. What is Milton Friedman’s critique of the standard textbook analysis of the effect of Federal Reserve policy?

Explain how a central bank is different to the other financial institutions such as Savings and...

Explain how a central bank is different to the other financial institutions such as Savings and loans associations, Credit unions, contractual savings institutions, and particularly commercial banks. Explain how (i) open market operations (ii) reserve requirements and (iii) the discount rate can be used to stimulate spending in an economy in an attempt to boost economic growth. An economy is suffering from a high and rising inflation rate. Explain how (i) open market operations (ii) reserve requirements (iii) the discount...

Many financial institutions borrow heavily in the money markets using mortgages and mortgage-backed securities as collateral....

Many financial institutions borrow heavily in the money markets using mortgages and mortgage-backed securities as collateral. Write a short essay about the lessons of the credit crisis to the deficit units and the surplus units who participate in the money markets? Should money markets be regulated to a greater degree to ensure proper collateral in money markets?

There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual...

There are various types of financial institutions and intermediaries such as commercial banks, investment banks, mutual funds, hedge funds, pension funds, insurance companies, etc. Why are there so many different financial intermediaries other than commercial banks? How does an investor’s risk attitude and/or wealth play a role in his/her selection of a financial institution or intermediary? If you were an investor seeking moderate return for your investment, how would you select a financial institution or intermediary? Choose one and explain...

What are the 3 major instruments that central banks can use to control money supply? Explain...

What are the 3 major instruments that central banks can use to control money supply? Explain each one.

What is the role of the central bank and financial institutions in improving the financial markets...

What is the role of the central bank and financial institutions in improving the financial markets in America? give an example

Why do banks or financial institutions specialize in making specific types of loans?....Please explain.

Many countries have a very similar set up of central banks responsibilities such as Financial Market...

Many countries have a very similar set up of central banks responsibilities such as Financial Market Stability, Monetary Policy and issuing currency. The central authority of the Tanzania money and banking system is the Board of Directors of the Bank of Tanzania. Required: Critically describe the purpose and membership of the Board of Directors of the Bank of Tanzania.

Question