Finance is a complex and multifaceted topic. at are two possible definitions of finance? A field that focuses on analyzing the stock market. A system that includes the circulation of money, the granting of credit, and investment decisions. A system whose primary function is to create value through the creation of intangible assets. A field that studies and practices the management of money and investment decisions.
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- Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Discounting A. A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years. Time value of money B. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years. Amortized loan C. A schedule or table that reports the amount of principal and the amount of interest that…Explain your understanding of money markets? Would you classify this as a financial market, financial instrument or financial institution? Give a reason for your answer.Discuss the importance of financial markets, then illustrate with a diagram the flow of funds from lenders to borrowers in a financial system.
- Illustrate with a diagram the flow of funds from lenders to borrowers in a financial system. Diagram must include: Savers Borrowers Financial markets Function of the financial intermediaries Function of the financial markets Direct finance Indirect finance(b) Discuss and distinguish the following concepts a. Money markets and capital markets b. Asset Allocation and Asset Selection c Active and passive Investment strategies d. Technical and Fundamental AnalysisHaving known the major functionalities of the financial system how do they perform their roles in the saving-investment process
- Hence, he seeks your help to identify the functions of financial market. Which of the following statement is true about functions of financial market?I. Discuss the different components of the Financial System and its importance. II. What is the difference between Direct and Indirect Financing?What is Qualitative Asset transformation (QAT) and how does it facilitate financial intermediation through the banks?
- Evaluate and summarize some monetary policies which will affect a particular type of financial market/institution.Are there any novel ways by which some of the challenges in the financial system may be resolved in your opinion? Explain1. Basic concepts Finance, or financial management, requires the knowledge and precise use of the language of the field. A. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Discounting A. A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely. Time value of money B. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years. Amortized loan C. A cash flow stream that is created by a lease that requires the payment to…