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What are the theories of financial intermediation?
Theories of financial intermediation explain the role of financial intermediaries, such as banks and investment firms, in the economy. Key theories include the Delegated Monitor Theory, which suggests intermediaries reduce information asymmetry by monitoring borrowers, thereby lowering transaction costs and risks. The Liquidity Transformation Theory posits that intermediaries convert short-term liabilities into long-term assets, thus providing liquidity to savers while funding investments. Lastly, the Risk Diversification Theory highlights how intermediaries pool funds from multiple investors to spread risk and enhance returns.
Explain why a regulatory framework is necessary?
Regulatory framework is necessary for the preparation of Financial statements. - Financial statements are used by investors, lenders and customers (to name but few) and must be helpful for those stakeholders for making decisions. - Statements should be comparable and provide basic information.
Explain the derivative functions of money?
Explain the derivative functions of money?
Explain the role of financial intermediaries in the flow funds through the three sector economy?
In a three-sector economy consisting of business, households, and government, financial intermediaries such as commercial banks, mutual saving banks, insurance companies, mutual funds, pension funds, and credit unions provide the mechanism for reallocating funds from one surplus sector to a deficit sector. These institutions indirectly invest excess funds in areas of the economy where funds are needed.
What do you know by bank .explain functions and importance of bank?
A Bank is an institution that serves as the financial intermediary in the economy. They are responsible for cash flow within the nation's economy. Their main functions include:Accepting DepositsLending LoansProviding Bank AccountsProviding Credit Cardsetc.
Explain briefly the different functions of human resource management?
define hrm briefly explain various functions of hr
What is explain of bank?
A bank is a financial institution that accepts deposits from the public, provides loans, and offers various financial services such as savings accounts, checking accounts, and investment products. Banks play a crucial role in the economy by facilitating transactions, providing credit, and helping to manage money. They also serve as intermediaries between savers and borrowers, thereby promoting financial stability and growth. Additionally, banks are regulated by government authorities to ensure the safety and soundness of the financial system.
Explain about industrial marketing channel levels?
These are the intermediaries used while marketing industrial goods to customers/companies.There may be zero/one/two/three level marketing channels in accordance with how many intermediaries are working in between the manufacturers and customers.
Functions of database manager in Database management system. explain the functions with example.?
functions of DBA in DBMS
What are two functions of the cili?
Explain cili
Explain the functions of the price system in the economy?
functions and roles of price in our economy in tanzania
The constitution consists of seven that explain the branches and functions of the US government?
The constitution consists of seven ________ that explain the branches and also functions of the united states government?
