The following are examples of financial intermediaries,EXCEPT:Question 1 options:Commercial Banks.Insurance CompaniesFederal...

The following are examples of financial intermediaries,EXCEPT:

	Commercial Banks.
	Insurance Companies
	Federal Reserve Banks
	Pension Funds

The following are considered part of the benefits generated by the existence of financial intermediaries in financial markets,EXCEPT:

	Facilitates the transfer of funds from savers to borrowers.
	Reduces Adverse Selection on lending operations.
	Improves efficiency in the allocation of resources.
	Eliminates all type of risk for investors.

Expert Solution

1. The following are examples of financial intermediaries, EXCEPT

Federal Reserve Banks

Federal Reserve bank does not deal with the customers directly thus it is not a financial intermediary.

2. The following are considered part of the benefits generated by the existence of financial intermediaries in financial markets,

The financial intermediary diversifies the risk of the investors but all types of risk does not get eliminated.

Financial intermediary acts as a bridge between the savers and borrowers, it reduces the problem of adverse selection and improves the efficiency.

Please contact if having any query will be obliged to you for your generous support. Please help me will be grateful to you. Thank You.

Rahul Sunny answered 2 years ago

Which of the following is correct regarding financial intermediaries? Multiple Choice Financial intermediaries specialize in assessing...

Which of the following is correct regarding financial intermediaries? Multiple Choice Financial intermediaries specialize in assessing the risk of optimization. Financial intermediaries specialize in assessing the risk of default. Financial intermediaries specialize in assessing risk of profitability. Financial intermediaries specialize in assessing the risk of succes

by using practical examples what are the roles and uses of financial intermediaries with the emphasis...

by using practical examples what are the roles and uses of financial intermediaries with the emphasis on currency swaps (NAD/USD) with comparative advantage argument?

what are the four elements of financial intermediaries . the definition of each and provide examples...

what are the four elements of financial intermediaries . the definition of each and provide examples of each

I.Financial Intermediaries: Briefly describe each of the following financial intermediaries in terms of the way they...

I.Financial Intermediaries: Briefly describe each of the following financial intermediaries in terms of the way they help issuers raise capital: Commercial Bank: Lending and deposit- taking; also expanded into investment advisory/trust services. Investment Bank: Handle securities issuance, merger/acquisition and reorganization advisory services. Financial Services Company: Includes broker/dealers, investment advisory firms. B. In what ways do efficient capital markets help both issuersand investors? II Capital Raising by Corporations: Identifyand describetwo typesof securities corporationsmay issue in order to raise capital. Is an initial...

QUESTION 3 By using practical examples what are the role & uses of financial intermediaries with...

QUESTION 3 By using practical examples what are the role & uses of financial intermediaries with emphasis on Currency Swaps (NAD/USD) with comparative advantage argument?

Describe the role of financial intermediaries.

1.The government heavily regulates the financial system by A. encouraging financial intermediaries to implement new financial...

1.The government heavily regulates the financial system by A. encouraging financial intermediaries to implement new financial tools without supervision. B. decreasing information available to investors. C. insuring the soundness of the financial system. D. allowing the financial intermediaries to determine the amount and type of assets they want to hold. 2. Prior to 1986, Regulation Q gave the Federal Reserve the power to A. limit competition between banks by restricting interstate branching. B. increase competition among banks by expanding entry...

Financial intermediaries are able to be profitable due to

Financial intermediaries are able to be profitable due toA. economies of scale.B. the ability to manage credit risk.C. good control of transactions costs.D. All of the above

the main services that financial institutions provide as financial intermediaries

1) In the spirit of financial intermediaries, compare and contrast the basic functions and clients of...

1) In the spirit of financial intermediaries, compare and contrast the basic functions and clients of a classic investment bank (e.g., Goldman Sachs) with a classic commercial bank (e.g., Bank of Bethesda). Again, as financial intermediaries, how do commercial banks and investment banks generally differ, if at all, from insurance companies, venture capital funds, or public pension funds?

Question