Questions
My home Practice Quiz [non-assessed]
Single choice
What is the primary role of financial institutions in indirect financing?
Options
A.a. Regulating financial markets
B.b. Providing grants to businesses
C.c. Acting as intermediaries between borrowers and lenders
D.d. Directly issuing stocks and bonds
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Step-by-Step Analysis
The question asks about the primary role of financial institutions in indirect financing.
Option a: 'Regulating financial markets' — While financial institutions operate within regulated markets, their primary role in indirect financing is not to regulate; regulation is typically the role of government agencies and central banks. This option conflates i......Login to view full explanationLog in for full answers
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Question3 How many of the following statements are correct in regards to intermediated financing arrangements? I. Users of funds obtain financing directly from money and capital marketsII. Financial instruments are issued directly between savers and borrowersIII. A commercial bank stands between savers and borrowers, with two separate contractual agreementsIV. Borrowers avoid the costs of intermediation and have increased flexibility in issuing securitiesV. There are higher search costs for suppliers of funds Two statements are correct Three statements are correct Four statements are correct All five statements are correct One statement is correct ResetMaximum marks: 1 Flag question undefined
Question3 How many of the following statements are correct in regards to intermediated financing arrangements? I. Users of funds obtain financing directly from money and capital marketsII. Financial instruments are issued directly between savers and borrowersIII. A commercial bank stands between savers and borrowers, with two separate contractual agreementsIV. Borrowers avoid the costs of intermediation and have increased flexibility in issuing securitiesV. There are higher search costs for suppliers of funds All five statements are correct One statement is correct Four statements are correct Three statements are correct Two statements are correct ResetMaximum marks: 1 Flag question undefined
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