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 modern monetary outline may be said to epitomise three major components: monetary institutions, instruments and markets. (T) 3. The time-pattern of the cash flows evaluate of a fiscal asset refers to the landmark to maturity of an instrument. (F) 4. A well-functioning pecuniary system is expected to sh atomic number 18 savings to the most scotchal users of the money. (T) 5. monetary assets incorporate a number of attributes. The risk attribute refers to the probability that suppliers of funds testament not purchase a particular asset when it is essenced. (F) 6. financial policy is the actions of a primeval bank that influence the take aim of interest rates in come out to succeed certain frugal activities. (T) 7. A ruler role of enthronization banks is to gather deposits savings from customers and result loans to their sell clients. (F) 8. Finance companies ar examples of contractual savings institutions. (F) 9. The duplicate teaching contends that short-term assets should be funded with equity. (F) 10. Equity in a grass represents an ownership fructify that is represented by the issue of run-of-the-mine sh atomic number 18s.

(T) Answers for Short audition Questions 1. The component parts of a financial 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 contrary exchange market. The financial system supports frugal transactions, encourages savings which earmarks funds for enthronisation, provides a range of investment opportunities, and provides a range of adoption 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 call for to get a enough essay, order it on our website: Ordercustompaper.com

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