When borrowers borrow funds from the financial market through a financial intermediary, it is known as : Direct financing Indirect financing Insurance financing

Q: Please explain what is direct and indirect financing? What is the role of banks in direct c.…

A: Financing is the process of raising funds for the business activities, to meet out payment…

Q: The sale of bonds is also referred a. Equity Finance b. Private Finance c. Debt Finance d.…

A: A firm can raise finance in two ways. They are referred to as debt finance and equity finance.

Q: The essential role of ____________  is to bring together the net users of funds and the net savers…

A: Markets can be of primary markets as well as secondary markets

Q: A credit union is an example of:   Select one: a.

A: A credit union is an important type of financial institution. It is very much similar to a…

Q: contractual savings institution, hedge fund, I.P.O. , investment banking, mutual fund, pension fund,…

A: Contractual saving institutions are financial intermediaries like brokers. They accept funds on a…

Q: Equity financing is the borrowed funds from outside sources like loans, bonds and mortgages. True or…

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: Illustrates cash flow patterns that are important when evaluating mortgagepass-through securities?

A: Mortgage pass-through securitiesSecurity is formed when an individual or number of mortgage holders…

Q: Explain the treatment of noncash investing and financing transactions.

A: The statement of cash flow is prepared only with the items of cash transactions incurred in the…

Q: How does the cost of equity based on internal funds differ from the cost of equity based on external…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Distinguish the following financial markets. Provide examples of the type and/or nature of the…

A: Debt market is the market where loans are bought and sold. It is also called the bond market. Equity…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities.…

A: Debt securities are raised by the firm as debt in order to finance projects whereas, equity…

Q: Explain each of the investment instruments stated below that offered by financial institutions.…

A: In the world of investing and finance there are several investment instruments. A person or an…

Q: Transactions involving the purchase and sale of long-term assets, investing in equity securities,…

A: Business functions are a combination of various activities.

Q: y banks to qualified borrowers * investment unsecured loans stand

A: Step 1   Customers can get unsecured loans from various lenders across the country. Several…

Q: provide financial instruments provide by commerical and investment banks.

A: Financial instruments are the assets of the company that are invested in the commercial banks or…

Q: Financial markets that facilitate the flow of short-term funds are known as: O Primary markets O…

A: Financial markets can be defined as the market where financial assets or instruments are traded.…

Q: The sale of bonds is also referred as: a. Public Finance b. Debt Finance c. Equity Finance d.…

A: The Bonds is a type of  a loan. When  a company, Government or muncipal corporation is in need of…

Q: Investments in debt instruments are financial assets because they are   A. Equity instruments of…

A: Solution: Investments in debt instruments are financial assets because they are "Contractual rights…

Q: This term is often used by various industries to determine the amount of risk an individual…

A: Analysis of the given options: i) Capital- Capital is money put to use for economic purpose and…

Q: 2. This type of investment is considered a debt instrument. A Stocks ® Bonds © Mutual funds O…

A: There are two type capitals equity and debt

Q: A bank's net interest margin represents the proportion of its investments that are financed with…

A: The difference between interest paid and interest received, adjusted for the entire amount of…

Q: Explain how mortgage-backed securities, collateralised debt obligations and credit default swaps are…

A: Mortgage backed securities: Mortgage is a loan secured by some real estate property or commericial…

Q: Which of the following bank services involves financial derivatives? Credit services O Transaction…

A: A derivative is an agreement between two or more parties in which the value is determined by an…

Q: Match the following words with the six C's of credit: character, collateral, capacity, capital,…

A: Credit is an important term for the business, mostly funds of the firms are on credit means are…

Q: The financial markets are composed of money markets and _____________. * a. lending institutions b.…

A: About Money Market The money market is a market which provides short-term funds. The money market…

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: Discuss the important of financial market, then illustrate with a diagram the flow of funds from…

A: Financial market is a market of creation and exchange of financial assets. If you buy or sell…

Q: With reference to a lender will loan a certain amount of funds to an entity in need of funds using…

A: Collateral is defined as the pledge of the borrowers in a lending agreement of the particular…

Q: a. investment banking  b. An insurance firm  c. commercial banking  d. mutual fund ) is simply a…

A: Brokers are simple the person who execute the trade on behalf of others therefore they can also…

Q: One of the roles of financial markets is to: O A. conduct fiscal policy. O B. transfer funds from…

A: In today's era of globalization,  Financial market is the most important and indispensable part of…

Q: Familiarization of investment types. Identify keywords if it is; Deposit Fund Bond Stock Property 1.…

A: 1. Collateral.   - Property  2. Shareholder - Fund 3. Creditor - Bond 4. Debtholder - bond 5. Equity…

Q: Mutual fund companies perform similar functions to banks in that they are deposit-taking…

A: Mutual fund companies take deposits from investors in a similar way to a bank. But there is major…

Q: Clearly explain the difference between debt securities market and equity securities market

A: Equity securities market is the place where equities of corporates are traded, i.e. purchased and…

Q: Discuss the different components of the Financial System and its importance

A: I am answering the first question out of the two submitted questions as per bartleby guidelines.…

Q: Compare and contrast different sources of corporate financing (external funds versus internal funds,…

A: Corporate finance means the day-to-day daily operations of the firm which are financial in nature.…

Q: investment

A: Investment banks are defined as financial enterprises who majorly provide various types of financial…

Q: 3. the major item in the liability side of the balance sheet is loans investment securities deposit…

A: Liabilities are payments which are owed by the firm to other counterparties of the business which…

Q: The fund based financial services do not include one of the following: O a. Consumer Credit O b.…

A: Fund Based Financial Service: Fund based Financial Services method of financing loans , working…

Q: A financial institution that is owned by its members and offers them banking services and ovides…

A: Buildings Society - It Resembles like Credit Union as it is Owned by its members and Also Provide…

Q: Which of the following is a financial instrument? Select one: a. Merchant bankers b. Leasing…

A: Financial instrument are those instruments which used for increasing or issue the share capital to…

Q: Which of the following can be categorized as Short term sources of finance? i Equity Shares ii.…

A: Source of finance can be both short term and long term

Q: a) Falco Inc. is considering a debt issue and is trying to determine the appropriate amount to…

A: Optimal capital structure is a mix of debt and equity which would maximize the value of the company.

Q: Which of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade…

A: Equity shares: Equity shares are a Long-term financing source of a company. Equity shares represent…