Finance

Tutorial (Week 2) True or False Questions 1. Money is a medium of exchange that includes belongingss of divisibility and a store of value. (T) 2. A advanced monetary governing body may be said to defend three major components: monetary institutions, instruments and markets. (T) 3. The time-pattern of the cash flows allot of a fiscal asset refers to the term to maturity of an instrument. (F) 4. A well-functioning fiscal system is expected to allocate savings to the most streamlined users of the funds. (T) 5. fiscal assets incorporate a number of attributes. The risk attribute refers to the probability that suppliers of funds will not purchase a particular asset when it is expirationd. (F) 6. Monetary policy is the actions of a central bank that influence the level of interest rates in come out to achieve certain frugal activities. (T) 7. A ruler role of investiture banks is to gather deposits savings from customers and yield loans to their sell clients. (F) 8. Finance companies are examples of contractual savings institutions. (F) 9. The interconnected teaching contends that short-term assets should be funded with equity. (F) 10. Equity in a grass represents an ownership position that is represented by the issue of run-of-the-mine shares.

(T) Answers for Short Essay Questions 1. The component parts of a fiscal system are financial institutions such as banks and indemnity offices. Financial instruments that are shares, term deposit and loan. Financial markets for example, gillyflower market and foreign exchange market. The financial system supports frugal transactions, encourages savings which provides funds for! investment, provides a range of investment opportunities, and provides a range of borrowing alternatives, efficient allocation of resources for economic addition and regulatory regimes provide strength and stability to a financial system. 2. (a) Money is a financial asset that facilitates financial and economic transactions. Money act...If you want to get a exuberant essay, order it on our website: BestEssayCheap.com

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