Which of the following can be described as involving indirect finance?

A) A corporation buys a short-term security issued by another corporation.
B) A corporation issues new shares of stock.
C) A commercial bank buys a government treasury bill from one of its depositors.
D) Both B and C of the above

In order to reduce risk and increase the safety of financial institutions, commercial banks and other financial institutions are prohibited from
A) making personal loans.
B) owning common stock.
C) owning municipal bonds.
D) making real estate loans.

Answers

Answer 1

Indirect finance involves both a corporation issuing new shares of stock and a commercial bank buying a government treasury bill from one of its depositors. To enhance the safety of financial institutions, they are prohibited from owning common stock.

Indirect finance refers to a situation where funds are channeled from savers to borrowers through an intermediary. Among the options provided, both B) A corporation issuing new shares of stock and C) A commercial bank buying a government treasury bill from one of its depositors can be described as involving indirect finance.

In option B, when a corporation issues new shares of stock, it is essentially offering ownership in the company to investors. These investors indirectly provide funds to the corporation by purchasing the shares, and the corporation can use these funds for various purposes, such as expanding operations or financing projects. The intermediary in this case is the stock market or the investment bank facilitating the issuance and trading of the shares.

In option C, when a commercial bank buys a government treasury bill from one of its depositors, it is engaging in an indirect financing arrangement. The depositor, who acts as the lender, invests in the treasury bill, which is essentially a debt instrument issued by the government. The commercial bank, acting as an intermediary, facilitates the transaction by purchasing the treasury bill from the depositor, thus providing funds to the government.

To reduce risk and increase the safety of financial institutions, commercial banks and other financial institutions are prohibited from owning common stock (option B). This restriction aims to prevent banks from being exposed to the volatility and potential losses associated with equity ownership. By limiting their investment activities to safer assets, such as government securities and low-risk loans, banks can maintain stability and safeguard depositors' funds.

In summary, the correct answer is D) Both B and C of the above can be described as involving indirect finance. Commercial banks and financial institutions are prohibited from owning common stock to reduce risk and increase safety.

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Related Questions

when did Toronto​ pearson​Airport​(Canada) start​ using​ technology​ or​ scanner​

Answers

Answer:

Canada's busiest airport will soon start to use artificial intelligence- powered technology to detect weapons. The technology can detect both metallic and non-metallic weapons ranging from  guns and knives to explosives, according to Liberty Defense Holdings Ltd., a  Vancouver-based company which first marketed the technology.  Known as Hex wave, the technology works by capturing radar images, then using  artificial intelligence to analyze them for concealed weapons in bags or under clothing.   Liberty's CEO, Bill Riker explained, "radar essentially is emitting this form of energy,  it's reflecting off a person and it's identifying any items on a person's body that don't  belong on a body." The technology will start getting deployed at Pearson in the Spring of 2020 in a bid to boost  security, according to the Greater Toronto Airports Authority, which runs Pearson.

if i post by business page will you guys follow it ?

Answers

Answer:

Yassss queeeennnn

Explanation:

jdnskakana

Explanation:

Yes i will definately follow it

Jerry's job requires that he wear a suit and tie every day to the office. This is most likely a(n) _____ atmosphere.

Answers

Answer:

I would say a formal or business atmosphere.

Explanation:

The main jobs that require suits are often business atmospheres. However, the wearing of a suit is called formal attire.

Answer:

The answer is formal

Explanation:

I took the quiz and got all of the answers right.

1. Calculate the Net Worth when Liabilities are $5,000 and Assets are $6,725​

Answers

The answer is 567.879 percent

Which of the following best describes a stock.

A) An incredibly stable investment that is always a safe investment
B) Is insured by the FDIC
C) Represents a share of ownership of a corporation
D) Only sold in the United States

Answers

Answer: C

Explanation: A stock represents a share of ownership of a corporation. Stocks are bought by people so they can get money. If the company's stock they by it from goes well, they get money as well as interest. The answer is C. Hope this helps!

Describe the information you will need to provide in order to complete a FAFSA. List at least three of the required documents you must include.

Answers

Answer:

Sample response: To complete a FAFSA, I must first include information to verify my identity. This includes my Social Security number or a driver's license. I must include information about my income or my family's income (if they are still responsible for my care). Finally, I must submit financial information, like my account statements.

Explanation:

2020 edg

What is the difference between Money
Market and Investments?

Answers

Answer:

can udo a pic so i can see

Explanation:

To satisfy demands for withdrawals, banks keep:
A. discount rates.
B. monetary policies.
C. balance sheets.
D. fractional reserves.​

Answers

C. balance sheets

explanation:

If 135 TV's are sold and cost $275 to produce and is priced at $250, what is the profit/loss?

Answers

Answer:

$25

Explanation:

The production cost is $275.

The selling price is $250

The loss/profit will be: Selling price minus cost price

=$250 - $275

=  -$25

A loss of $25.

If this is the cost for all the 135 TVs, then the loss is only $25.

N:B

If the costs are for one TV, then the loss will be $25 x 135=$3,375

MULTIPLE CHOICE: Scar stole Mufasa's debit card and used it to buy a vacation package to the Savannah. Which account would the money come out of? (choices are savings, checking, certificate of deposit, and online checking)

Answers

Answer:

Savings.

It cannot come from certificate of deposit or online checking, since it is a debit card.

Fractional reserve banking increases the money supply in an economy by:
A. preventing depositors from leaving a lot of money in banks.
B. requiring the government to print more money in certain
situations.
C. loaning money that would otherwise be held in a bank.
D. accepting currencies from many different countries to pay off
loans.

Answers

Answer:

C. loaning money that would otherwise be held in a bank.

Explanation:

Fractional reserve banking increases the money supply in an economy by "loaning money that would otherwise be held in a bank."

Fractional reserve banking is known as a system of banking whereby the banks hold a fraction of what customers deposit as reserves. Then the banks use the remaining to give loans and thereby creating and increasing the supply of money. Commercial banks practise this type of banking system. This tells of how commercial banks are affecting the money supply. The bank reserves are usually held as cash in the bank. It can also as balances in the bank's account at their central bank.

Answer:

C. loaning money

Explanation:

just did it on a-p-e-x

Think of a substantial product you regularly purchase, such as video games or jeans. If supply is high and
demand is low, what happens to the cost? How might that affect someone's income? Likewise, if supply is low
and demand is high, what happens to the product's cost? How might that affect someone's income?

Answers

Answer:

See below

Explanation:

1. When the supply is high, and demand is low, an item's cost will probably come down. High supply with low demand creates a surplus in the market. Seller will offer the lowest prices possible to woe buyers.

When an item's prices go down, buyers will spend less money buying the product. The buyer saves some money, which is equivalent to having more income than before.

2. With a low supply but high demand, prices tend to go up. There will be great competition for the few goods from the many buyers. As a result, suppliers will hike prices and make more profits.

An increase in prices forces buyers to spend more money to buy the same commodities. Their disposable income decrease, which is the same as having a reduced income

Sam has take-home pay every month of $800. He anticipates that his expenses will add up to $675 for the month. In a zero-based budget, why is it important that she put the extra $125 in SOME budget category? Where might you suggest that Sam put the extra $125?

Answers

Answer:

Second savings account

Explanation:

Life is full of surprises... repairs or emergency cases this would be helpful to have

Answer:

In a zero based budget, your income needs to add up to zero at the end of every month. For that reason I recommend that if he still has money left over after paying bills and other expenses he should put in savings.

Which of the following should which of the following should be of concern when a company considers expanding into a new International market?
the country's legal system
the country's political stability
the education level of the workforce
all of the above

Answers

I think it might be (all of the above)

TRUE OR FALSE: It is always free to use an ATM if you have a debit card

Answers

Good luck !!! This is what I found

Answer:

False

Some banks/stores will require you to pay if you use an ATM. In some cases, it is not about whether you have a debit card or not. Debit cards are primarily used to remove money from a bank account, not for ATMs.

which of the following is a workplace trend?
A - decreased outsourcing
B - decreased attention to diversity
C- increased use of manual labor
D - increased technology literacy

Answers

Answer:

increased use of manual labor

Explanation:

Advancement in technology has resulted in machines taking over manual jobs.  A few decades ago, manual work was done by human beings exclusively. Industries hired many laborers to assist in many aspects of the business. Today, machines and robots are deployed in different sectors of the economy.

The current trend is the workplace is the use of modern technology. Computers, machines, and robots are gradually replacing people, mostly unskilled and manual laborers.

A _____ is an estimation about a future situation based on the evaluation of facts.

1. projection
2. fact
3. salary
4. growth

Answers

Answer:

Projection

Explanation:

Answer:

Yes the correct answer is (PROJECTION)

Explanation:

Why do you think economists have different belief systems/theories on economics?

Answers

Economists have different belief Systems because Economists also disagree because their methods are not good enough to reveal the whole truth. Economic theory is an attempt to explain and interpret economic data, for example, to determine the causes and effects of economic events.

Answer:The principal disagreement among economists is a matter of economic philosophy. There are two major schools of economic thought: Keynesian economics and free-market, or laissez-faire, economics.

Keynesian economists, named after John Maynard Keynes, who first formulated these ideas into an all-encompassing economic theory in the 1930s, believe that a well-functioning and flourishing economy may be created with a combination of the private sector and government help.

By government help, Keynes meant an active monetary and fiscal policy, which works to control the money supply and adjust Federal Reserve interest rates in accordance with changing economic conditions.

By contrast, the free-market economists advocate a government "hands-off" policy, rejecting the theory that government intervention in the economy is beneficial. Free-market economists—and there are many distinguished advocates of this theory, including Nobel Memorial Prize winner Milton Friedman—prefer to let the marketplace sort out any economic problems. That would mean no government bailouts, no government subsidies of business, no government spending explicitly designed to stimulate the economy, and no other efforts by the government to help what the economists believe is the ability of a free economy to regulate itself.

Explanation:

Which one of the following businesses would you classify as being in the secondary sector of industry?

A) Oil exploration company
B) Family run farm business
C) Taxi operating business
D) Shoe manufacturer

Answers

Answer:

shoe manufacturer

Explanation:

Based on the W-2 provided, Social Security tax withheld for Lily was ______ of wages and Medicare tax withheld was ______ of wages.

a. 1.3%, 5.5%
b. 6.2%, 1.45%
c. 10%, 10%
d. 28%, 39.8%

Thanks for any help I can get! I don't need an explanation as to how you got the answer. ​

Answers

Answer:

b. 6.2%, 1.45%

Explanation:

Social security and medicare are calculated as a percentage of the gross pay. For Lily, gross pay is $14,450.

For social security, 895.90 is deducted. As a percentage of her gross pay

895.90 will be.

=895.90/ 14,450 x 100

= 0.06193771 x 100

=6.2 %

For medicare, 209.5 has been deducted.  As a percentage of her gross pay, 209.5 is

=209.5/ 14,450 x 100

=0.01449827 x 100

=1.45%

The social security tax is the tax amount that is acquired from the earned income to fund the benefits of social security. It is the major part of the salary that carries the benefits for the person who earns it and contributes some part for the benefits of the government.

The correct answer is b. 6.2%, 1.45%

Social security and medicare are calculated as a percentage of the gross pay. For Lily, gross pay is $14,450.

For social security, 895.90 is deducted. As a percentage of her gross pay

895.90 will be.

[tex]=\frac{895.90}{14,450}\times 100= 0.06193771 \times 100=6.2 \%[/tex]

For medicare, 209.5 has been deducted.  As a percentage of her gross pay, 209.5 is

[tex]=\frac{209.5}{14,450} \times 100=0.01449827 \times 100=1.45\%[/tex]

To know more about the social security tax, refer to the link below:

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Which is used to trace a check back to the account on which it was written?
Group of answer choices

a valid date

an endorsement

a bank route number

a signature

Answers

Answer:

a bank route number

Explanation:

The routing number is among the three numbers found at the bottom of a check. The routing number is at the bottom left.  It serves as an ' identity ' for your bank. The routing number enables other banks to contact your bank and collect funds from your account every time you write a check.

A routing number is a unique number for every banking institution.  The number proves that the bank is a recognized financial institution with an account with the Federal Reserve.

Helppp please
The fact that a country has less strict labor laws and relaxed environmental regulations are strong reasons for a
company to move production facilities to that country.
True
False

Answers

The answer has to be true

Answer:true

Explanation: I just took the test

Virtue ethics places great focus on which of the following

Answers

Answer:

character i think.

Explanation:

In what circumstance would a property insurance claim be rejected?

Answers

• You don’t file your claim promptly
• The cause of property damage falls under an exclusion condition in your policy.
•You haven’t been paying your insurance premiums.
• The damage isn’t sufficiently documented
•The insurance adjuster finds anything suspicious or false in the claim.
•You didn’t take precautions to prevent further damage after the initial loss.

If you have an orientation where you are completing training exercises on a computer, it is probably a ____.
A new hire orientation
B interactive orientation
C reorientation
D mentorship

Answers

Answer: new hire orientation

Explanation:

New employee orientation is used in order to welcome newly employed workers to the organization and this is done in order to integrate the new workers into the system, train them, and make them feel welcomed and part of the organization. .

This helps to boost the confidence of the employees, leads to increase in the retention of employees and also boost employees morale.

Interaction orientation simply means the interaction that takes place between companies and their customers and this is done in order to improve the relationship with customers and achieve organizational goals.

Mentorship simply means having a mentor to guide an individual. Reorientation simply means to change a particular focus or mindset of certain people.

Based on the explanation, the answer is new hire orientation.

Answer:

A

Explanation:

what is the role of doctors in our society?​

Answers

Their role is to serve the society as others do basically contribution but their actual role is to help others through their medical knowledge.

Should voting be mandatory?

Answers

Answer: Yes

Explanation:

Answer:

no

Explanation:

because no

Which of the following is not one of the factors in determining a pension's final value?

A) Years of serivce
B) Level of education
C) Your age at retirement
D) Your highest salary/pay

Answers

Answer:

B

Explanation:

WILL GIVE BRAINLIEST
If loans and credit card debt are taking up most of your monthly income, which of the following is the LEAST effective first step in getting your debt under control?
A. Start a side hustle and allocate the money you make towards extra payments for your debt.

B. Take a hard look at your budget and try to cut nonessential items so you have more cash to pay down your debt.

C. Declare bankruptcy, which will eliminate all your debts and allow you to start over with a clean slate.

D. Pay extra money each month to the debt with the highest interest rate, so you'll decrease the total amount you'll spend on debt.

Answers

Answer:

a or c i fliped a coin and got A sounds like the answer rember jesus loves you

Explanation:

A local Barnes and Noble paid a $79.99 net price for each hardbound atlas. The publisher offered a 20% trade discount. What was the publisher’s list price?

Answers

Answer:

i believe it would be 63.99

Explanation:

Based on the information given the publisher’s list price is:$99.99.

Using this formula

List price=Net price/(100%-2=Trade discount)

Where:

Net price=$79.99

Trade discount=20%

Let plug in the formula

List price=$79.99/(100%-20%)

List price =$79.99/80%

List price= $99.99

Inconclusion the publisher’s list price is:$99.99.

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Other Questions
4) a) Efo Ganyo and Daughters common stock just paid its annual dividend of $1.80 per share. The required return on the common stock is 12%. Estimate the value of the common stock under each of the fo Felix & Co. reports the following information about its sales and cost of sales.PeriodUnits SoldCost of SalesPeriodUnits SoldCost of Sales10$ 2,56062,0605,56024603,16072,4606,16038603,76083,2806,76041,2604,36093,2607,36051,6604,960103,6608,050Hint: (Draw an estimated line of cost behavior using a scatter diagram offline.)Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method.High-Low Method - Calculation of variable cost per unitChange in costCost at high point minus cost at low point0Change in volumeVolume at high point minus volume at low pointHigh-Low Method - Calculation of fixed costsTotal cost at the high point $ 8,050.00Variable costs at the high point:Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point:Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs Jim is a priest of the only church in Cardwell. 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