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2 years ago

The existence of financial middlemen and financial intermediaries increases the efficiency of the financial markets.

1 answer:

3 0

It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market

<h3>Who are financial intermediaries?</h3>

This refers to those entities that acts as the middleman between two parties in a financial transaction such as a commercial bank, investment bank, mutual fund, or pension fund. They offer a number of benefits to the average consumer such as safety, liquidity, and economies of scale involved in banking and asset management.

However, It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market because only the buyers and seller influence an efficiency of the financial market.

Read more about financial intermediaries

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Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the

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Answer:

In the books of Eisler Corporation :

Cash ( 2,000 x 1,000 x 101 %) A/c Dr. 2,020,000

Discount on Bonds Payable A/c Dr. $59,216

To Bonds Payable 2,000,000

To Paid-in Capital : Stock Warrants 79,216

Workings:

Bond issue proceeds proportionately allocated to bonds:

$=2,020,000\times\frac{980}{980+40}$

= 1,940,784.31

Discount on bonds payable = $ 2,000,000 - $1,940,784

= $59,216

4 0

3 years ago

The right to trade an investment over a certain period of time is called a(n):

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The right to trade in investment over a certain period of time is called C. Option.

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3 years ago

A foreign company has offered to buy 75 units for a reduced sales price of $320 per unit. The marketing manager says the sale wi

belka [17]

Answer:

an increase in the operating income by $16,322

Explanation:

The computation of the impact in the operating income is given below:

Variable cost of 75 units (1300000 × 75 ÷ 12700) 7,678

Sale price of 75 units (75 × 320) 24,000

Increase in operating income (24000 - 7678) $16,322

hence, the impact in the operating income is that there is an increase in the operating income by $16,322

4 0

3 years ago

A project sponsor is responsible for ensuring that all of the project management and technical development processes are in plac

MariettaO [177]

Answer: False

Explanation: The operations defined in the given problem are performed by the project manager and not the project sponsor.

The project manager is typically considered as the owner of the project. Its main duties relates to providing necessary resources to complete the project. On the other hand the project manager is responsible for completing the project in the way it was planned to be.

Thus, the given statement is false.

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3 years ago

Dave is a salaried employee who works in a gas station. He only earns from his job and has no other source of income. He gets a

Grace [21]

Answer:

In my opinion the most suitable answer is E. increase his sources of income to show a rise in his income after taxes

Explanation:

The reason is he could lower his expenses too, but for how long? Inflation is going to eat his salary away anyway possibly in 5 to 10 years so what Daventry ustock do is to create another source of income so that he is safe. Possibly through investing in income generating assets, real estate and possibly a side hustle! (A small time business)

6 0

3 years ago