Why financial institutions are highly regulated

Assignment Help Financial Management
Reference no: EM13804367

Why financial institutions are highly regulated in all countries?

A) Financial institutions are the major collectors of the public's savings.

B) Financial institutions have the power to create money.

C) Financial institutions provide businesses and individuals with loans that support consumption and investment spending.

D) Financial institutions assist governments in conducting economic policy, collecting taxes and dispensing government payments.

E) All of the above.

Reference no: EM13804367

Questions Cloud

High-liquidity plan the return : Optimal policy mix Assume that Atlas Sporting Goods, Inc., has $800,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 15 percent, but with a high-liquidity plan the return will be 12 percent. If the firm goes..
Discourage investment in these developing economies : Do the International Monetary System's policies support or impede the progress of developing economies? Do these policies encourage or discourage investment in these developing economies?
Depreciated using straight-line method : Suppose Trahan Co. is considering a three-year expansion plan in a machinery with initial investment of $4,000,000. The machinery will be depreciated using straight-line method over three years after which the value of asset will be $500,000.
What is the value ofthe stock if the required rate of return : A stock just paid an annual dividend of $2. The dividends are expected to grow at 20%per year over each of the next three years and 5% per year thereafter. What is the value ofthe stock if the required rate of return is 12%?
Why financial institutions are highly regulated : Why financial institutions are highly regulated in all countries?
Discuss importance of budgeting for these types of companies : Consider companies that have very distinct seasonal variations. Some companies may have periods of very little to no sales. Discuss the importance of budgeting for these types of companies.
Present and future value interest factors : Given r and t greater than zero, what is true concerning Lump Sum present and future value interest factors? present value interest factors are less than 1
More data used in forecasting-more accurate forecast : "The more data used in forecasting, the more accurate the forecast will be." Do you agree with this statement? If not, provide an example of when this might not be true.
About stagflation in the economy : Do you think that the Fed is currently concerned about stagflation in the economy? Why or why not? How did the U.S. stock market react to the last FOMC meeting? Did the S&P 500 Index go up or down?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the minimum variance and optimal portfolio

Create a model that will automatically calculate the minimum variance and optimal portfolio as well as be able to draw the efficient frontier for a 3 risky asset portfolio.

  Mutually exclusive-required projects with the cash flows

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent. Project A s Cash flow from year 0 to year 3: -1000, 400, 40..

  What is the bid asked spread in dollars

what is its current yield. what is its YTM. what is the bid asked spread in dollars.

  Average does it take the firm to sell an inventory item

Middleton's has sales for the year of $311,400, cost of goods sold equal to 74 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 34 percent. How many days on average does it take the firm to sel..

  Determine the magnitude of year investment that an investor

Reclamation costs on a project are expected to be incurred over a 30 year period from 27 to 56 years in the future from now. Reclamation costs are estimated to escalate 7% per year in the future.

  Explain the role of government in international trade the

explain the role of government in international trade the various levels of economic integration and the impact on

  Risk bearing-marketing and auditing the financial statements

Which of the following is not one of the four main functions that underwriters provide? Risk bearing. Marketing, Auditing the financial statements

  Estimate the current value of stock using same assumptions

Marge Inovera is trying to value the stock of Hot Tub Time Machines, Limited (HTTM). To easily see how a change in one or more of her assumptions affects the estimated value of the stock, she is using a spreadsheet model. The model has projections fo..

  Calculate the breakeven price

Break Even formula help? A hospital is considering establishing a CT lung screen for current and former smokers. Calculate the breakeven price from the following information:

  What is its self-supporting growth rate

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  Compute the debt ratio and equity ratio

Compute the gross margin ratio and net profit margin ratio, compare the current ratio and acid-test ratio and compute the debt ratio and equity ratio.

  Efficient market hypothesis

Provide a description of the three forms of the Efficient Market Hypothesis using the picture below.  Do you think the markets are efficient?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd