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3 years ago

What relationship exists between financial institutions and financial markets? g

Business

1 answer:

NemiM [27]3 years ago

3 0

Answer:

Access and price relationships

Explanation:

Financial institutions - organizations operating in the financial and credit system. In the interpretation of the Western economic tradition, financial institutions are intermediaries between investors (households) and entrepreneurs (consumers of investments).

Financial markets are mechanisms that enable funds to be transferred from those with excess funds to those with few funds. Financial markets are divided into two as money markets and capital markets in terms of maturity. Money markets are markets where short-term funding supply and demand meet. Here, a short term is a year and a shorter term. Capital markets are the markets where long-term fund supply and demand are encountered. Here, long term is meant for over a year. Financial markets also provide low transaction cost value and prices that reflect the effective-market hypothesis.

We can think of basic relationships. The first concerns about the access. Financial institutions provide access to financial markets on behalf of investors seeking financial assets, such as institutional investors. The second relationship can often be claimed as "price." Financial asset prices (traded in financial markets), research and trading activities in financial assets, the actual cost or price of a particular asset affect the performance of financial institutions that affect the market outlook. For example, if a financial institution holds a significant stake in a particular company, it is a sign of markets (good or bad) and ultimately affects the price that a company is willing to pay for a financial asset. (e.g. stocks, bonds, etc.).

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The potential for industry growth, whether it seems as though competition will only get stronger or weaker, and the company's competence in carrying out industry key success factors.

An organized subset of economic activity is the subject of this article. See Manufacturing and Industrial society for information on mass manufacturing and its implications. An industry is a division of an economy that creates a cluster of closely linked goods, services, or raw materials (for a list of additional uses, see Industry macroeconomics). One may cite the wood business or the insurance industry as examples.

Industry classifications often use a company's or group's major source of revenue when evaluating it to place it inside a certain industry. For instance, "statistical units" are categorized by the "economic activity in which they primarily participate" according to the International Standard Industrial Classification (ISIC), which is utilized directly or through derivations for the official statistics of the majority of countries worldwide.

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7 0

9 months ago

A company has a net sales of 847000 and cost of goods sold of 561500. Its net income is 101200. The company's gross margin and o

SVETLANKA909090 [29]

Answer:

Gross profit margin = 33.7%

Operating expenses = $184,300

Explanation:

The gross margin is the percentage of sales value is earned as gross profit.

Gross profit = Sales - cost of goods sold

=847,000 -561,500 =$285,500

Gross profit margin = (Sales - cost of goods sold)/sales × 100

= (847,000 -561,500/847,000) × 100

= 33.7%

Operating expenses represent the amount of indirect cost expenditures which cannot be traced to the cost of the goods sold . This include administrative expenses like rent, insurance e.t.c

Operating expense = Gross profit - Net income

= (847,000 -561,500) - 101,200

= 184,300

5 0

3 years ago

Nielsen Auto Parts had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets w

balu736 [363]

Answer:

Capital Expenditure during the year 40,706

Explanation:

opening assets = 218470

less: Depriciation for the year = (42822)

less: Disposal of assets = (6943)

less: Closin Assets = (209411)

Balancing figure additions = 40706

8 0

2 years ago

Summarize the effect of credit card interest on the real cost of items.

JulijaS [17]

Answer with its Explanation:

The result is that some of the credit cards pays interests on the cash surplus and charges interests on the cash deficit. If the interest rate is higher then the interest on the real cost of items that are finance with the negative balance will be charged interest on the higher interest rate because the interest rate is higher. If the interest rate is lower then the effect of credit card interest rate would be higher on the real cost of items.

3 0

3 years ago

Peter is creative and excels with visual presentation. He enjoys working in small groups and in an active work environment. Whic

MArishka [77]

Answer:

Painter

Explanation:

He is creative and active work environment can be in nature for a painter

5 0

3 years ago

Read 2 more answers