What is the market economy?How dothe financial marketsinteractwith product and labor markets to allocate scarce resources efficiently in the market economy?

Q: What is capital rationing?

A:

Q: Why should the managers make investment decisions on the basis of cashflows rather than profits?

A: Net income: The bottom line of an income statement which is the result of excess earnings from…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: What does it mean for a financial market to be considered (a) informationally efficient and (b)…

A: The financial market is a market where investors and traders buy and sell securities at a low price…

Q: Why are financial intermediares so important to an economy?

A: Definition : In simple words, financial intermediaries refers to the individuals and entities that,…

Q: Why are secondary market prices relevant for a firm

A: Secondary market can be defined as the market where securities which have been already issued in the…

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: Why are financial markets important to the health of the economy?

A: Financial market is the marketplace where purchasers and sellers interact with each other and…

Q: Explain how useful the price mechanism is in tackling the basic economic problem?

A: the main role of price mechanism in basic economic problem is allocate scare resources in market…

Q: behavioral view” of market efficiency

A: The Efficient Market Hypothesis is usually predicated on the belief that traders and investors…

Q: Do firms have any responsibilities to society at large? ◦Is stock price maximization good or bad…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Deferring roles of financial institution play in economy

A: Financial institutions, also referred to as the banking institutions, are the corporations that…

Q: what are the sssumptions about market efficiency?

A: The theory that states that all the information available in the capital market is reflected in the…

Q: What does it mean for a market to be “efficient”?

A: The market is efficient in the scenario when the stock price in the present market is not…

Q: WHY IS MONEY MARKET IMPORTANT FOR BUSINESS?

A: The money market is a market of funds in which short-term funds are provided to the entities that…

Q: What is market efficiency? Differentiate between weak and semi strong form efficiency

A: Market efficiency is the ability of markets to process the information quickly and generate the…

Q: What is market approach measurement?

A: The market approach is just like comparing one set of assets with another both having the same…

Q: what is financial market?  Explain its functions.

A: Financial markets are the marketplaces where financial instruments, securities, and derivatives are…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Introduction: Financial markets are markets where the exchange of financial securities takes place.…

Q: Give an example of how the competitive environmentinfluences prices. What about government…

A: Pricing strategy seems to be a method used to determine the price of a certain good or service by…

Q: Why should we consider transaction costs in examining the role that money plays in society?

A: Transaction Cost: It is the expenses incurred from buying or selling of goods or services. It is the…

Q: What factors Influence the spending behavior of the different sectors of the economy? How do…

A: The following are some factors influencing how individuals in various economic sectors will spend…

Q: what are the assumptions about market efficiency ?

A: Market efficiency refers to the market situation where stock prices reflect all available &…

Q: How can we determine the Cash flows associated with producing products?

A: The transfer of money in business is called the cash flow of the money in a business. If a business…

Q: What are the disadvantages of the financial intermediaries and the negative ways they can impact the…

A: A financial intermediary is that entity that acts as a middleman in a financial transaction taking…

Q: inverted

A: An inverted yield curve is a curve which shows that the company's long term debt instruments have a…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: ial Markets he

A: Help of financial markets : For the both private and public sector enterprises, the financial market…

Q: Demand, Competitions and distribution chain are factors relating to: a. Internal Factors b.…

A: There are various factors in the environment of a business that influences and impacts the…

Q: In what way are profitability and efficiency related? How are profitability and liquidity related

A: The question explains about profitability and efficiency related and profitability and liquidity…

Q: What are the roles of Financial System in the Economy?

A: The financial system plays an important role in the development of the economy. It helps in order to…

Q: financial institutions im

A: Introduction : In simple words, financial institutions refers to the entities that are engaged in…

Q: Explain any two factors that influence asset demand in an economy

A: The question establish a relation between economic factors and demand of a financial asset. The…

Q: To what extent does Money Market contribute to financial markets, and how

A: INTRODUCTION : Traders in financial instruments may participate in the market. It is possible to…

Q: What are the major economic functions of the interest rate? How might the fact that many businesses…

A: Interest is the price paid by the borrower for using the money borrowed from the lender.

Q: What are the importance of Financial Market?

A: Financial Market: It is the market where  financial securities and derivatives  are traded by people…