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3 years ago

Financial intermediaries exist because small investors cannot efficiently _______.

Business

2 answers:

Kryger [21]3 years ago

4 0

Answer:

C) Diversify their portfolios, assess credit risk of borrowers, or advertise for needed investments

Explanation:

A financial intermediary is the middleman that brings together a person (or business) with excess money and a person (or business) that needs money, e.g. commercial and investment banks, mutual funds.

Imagine that you work a lot and were able to save $100,000. If no financial intermediaries would exist, what would you do with your money?

Hide it somewhere in your house or under an X in a treasure island.
Search for someone that needs money and is willing to pay interest for it. But how do you know that he/she will pay you back?
Spend it all on a new car and a trip to Europe.

Instead, since financial intermediaries exist, we can just deposit our money in a bank or invest it in stocks. It is much simpler this way.

Now imagine that you are the on the other side and you need money to buy a car or a house. What can you do?

Ask your parents or another relative to give you the money.
Go looking for someone that is willing to trust you and lend you money and hopefully he wouldn't break any of your bones if you pay on time.

But since banks exist, we can go and get a mortgage or a auto loan.

Now all this mess multiplied by millions of people and businesses and trillions of dollars is really a nightmare. No one likes banks. I doubt even their employees like them, but we need them.

rusak2 [61]3 years ago

3 0

Answer:

The correct option is C,small investors cannot efficiently diversify their portfolios, assess credit risk of borrowers, or advertise for needed investments.

Explanation:

Financial intermediaries are those institutions that link the surplus side,those with cash surplus to requirement and the deficit side,those that are short of the required amount of cash for investment purposes.

Financial intermediaries as experts in the field have the requisite knowledge of the market,skills and experience to diversify portfolio.

Diversification involves ascertaining the various instruments the funds available be invested in and the proportion to invest in each .

It is also noteworthy to determine the credit risk of the borrowers to ascertain how risky the investment is and the appropriate level of return.

Finally,the intermediaries advertise the needed investments,for instance an Initial Public Offer could be advertised by prospectus.

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A defendant set off fireworks at a fully-licensed Fourth of July show. The result of the activity caused harm to the plaintiff.

larisa86 [58]

Answer:

False

Explanation:

In legal proceedings one need to publish that there are the facts that reveal that the circumstances on the factual basis are true.

Mere chances that it might have happen are not conclusive to declare that plaintiff is correct.

Thus, he needs to establish that there were damages caused and not only the possibility that the damages could occur.

In the given instance it assumes that the facts merely if establishes that there could be damages will not let the plaintiff win the case.

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3 years ago

In a telephone conversation, a jewelry maker offered to buy 100 ounces of gold from a precious metals company if delivery could

Katarina [22]

Answer:

Explanation:

Since in the question there is a situation given in which there is a telephonic conversation and later onwards the jewelry maker refused to accept the goods delivery or pay $65,000 as per the company

So this represents that there is no enforceable contract lies between the company and the jewelry maker as the agreement is not in writing so it would not be considered as a valid contract

hence, the answer is no

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4 years ago

In its first year of operations, Roger Company purchased trading securities at a total cost of $53,000. On December 31, the end

Alexeev081 [22]

Answer:

Investment in Trading Securities of $57,000

Explanation:

Based On the information given we were told that the FAIR MARKET VALUE of those investments totaled the amount of $57,000 which therefore means that As a result of these investments, Roger Company will report INVESTMENT IN TRADING SECURITIES of the amount of $57,000.

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3 years ago

2022 versa’s available intelligent key eliminates the need to use ________.

MissTica

Answer :

A blade ignition key to start the engine.

Remote keyless entry to lock or unlock the doors

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3 years ago

360-degree feedback Select one: a. is designed to provide feedback for promotion or pay decisions. b. is designed to deal with a

Aneli [31]

Answer: Option C

Explanation: In simple words, 360-degree feedback refers to the feedback process in which an employee receives feedback from not just its superiors but from his or her peers, subordinates and customers also. Even sometimes self evaluation is also taken into consideration.

Such process provides a clear picture of how an employee perceives themselves and what is their image in the eyes of other related parties. These processes helps an individual employee to understand their strength and weaknesses and it also provides insight for their personal development.

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3 years ago