Which of the following is not a role of financial intermediaries? A. Maturity intermediation O B. Diversification OC. Reducing contracting (transaction) costs O D. Providing payment mechanisms O E. None of the above
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- Which statement is incorrect related to financial intermediaries (institutions)? a. They are firms that specialize in financial intermediation - a process of borrowing funds from SSUs and lending such funds to the DSUs. b. The main objective of financial intermediaries is to convert savings from SSUs into investments. c. They are the biggest investors in equity securities in the PSE d. They offer the highest returns and lowest risks when compared to alternative investments available to SSUs. e. none of the aboveWhy might it be difficult for a buyer and seller to agree on a price when imperfect information exists?a. Why are Moser Baer customer’s moving towards VMI arrangement and what benefits and risks are involve? Explain Briefly
- In pass through certificate payments comes through O a. Underlying loans O b. Underlying securities O c. Underlying collaterals O d. Assets heldOver-the-counter credit derivatives are private contractsbetween two companies; is it appropriate for the government to force them to be soldon regulated exchanges like commodities are? Why or why not?Identify issues that associate either Trustwortiness in E Banking/E wallet, Your essei should explain trust issue that arise when using E Banking/E wallet, factors that influence customer trust and how to overcome trust issues in E Banking/E wallet. Your essei should be hand wrinting 250 words only 1 pages
- An issuing bank is responsible for: O a. preparing a bill of lading O b. making freight arrangements O c. issuing a certificate of origin O d. issuing a letter of creditWrite a report highlighting how simulation methods can be embraced in banking sector4. Which of the following is most likely a financial security? a. Foreign currency O b. Insurance plan c. Commodities d. Preferred share O e. None of the above
- Money is any asset that is generally accepted as payment for goods, services, wages, and other payments to inputs. This function of money is called O unit of account. O store of value O standard of deferred payment. O medium of exchange.A firm in Canada is due to receive payment of US$1 million in 8 years’time. It would like to protect itself against a decline in the value of the USdollar, but finds it difficult to get forward cover for such a long period, isthere any other way in which it can protect itself? Explain1. How does a mutual fund lower transactions costs through economies of scale?