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- What are the roles or purposes of the following: • Mutual Funds • Pension Funds • Other financial institutions?Which of the following assets would be considered least liquid? Group of answer choices A savings account A checking account An interest-paying checking account A money market mutual fund Series EE US savings bondsDifferentiate between mutual funds and mutual savings banks with an example of each ?
- What are the roles or purposes of the following: • Commercial Banks • Insurance Companies • Pension Funds?a. The purchase of mutual fund shares. b. Depositing in a credit union. c. Borrowing from a friend or relative. d. Employee contribution to a pension fund. Which ones of the above are examples of indirect financing? a and b a, b and c a, b and d a, c and d all of the above.Mf3. (a) In relation to the underlying risk insured, explain why the use of funds differs for general insurance companies and life insurance companies. (b) Insurance companies manage funds as a part of the business of providing insurance. Describe another type of managed fund discussed in the course and explain how this differs from an insurance company. In your answer give an example of a source and use of funds for this managed fund.
- Discuss the important of financial market, then illustrate with a diagram the flowof funds from lenders to borrowers in a financial system.Mutual Fund Company and explain the services provide by themWhich of the following statements about savers, borrowers, financial system and financial intermediaries is true: i) Savers receive less interest than what borrowers pay ii) Savers receive more interest than what borrowers pay iii) The stock market is a financial intermediary iv) The stock market is part of the financial system v) Financial intermediaries channel funds between borrowers and savers O i, ii, and iv O i, i, and v O ii, iv, and v O i, iv, and v
- Discuss the importance of financial markets, then illustrate with a diagram the flow of funds from lenders to borrowers in a financial system.The essential role of ____________ is to bring together the net users of funds and the net savers of A) Financial markets b) financial institution c) Financial claims d) primary markets(a. investment banking b. insurance firms c. commercial banking d. mutual fund e. pension fund) is a transformer of short term liabilities to long term assets. e d b c a