Financial intermediaries frequently offer a variety of benefits to both the borr

Q: Financial intermediaries frequently offer a variety of benefits to both the borr

1- check all that apply statement 1 statement 3 statement 4 2- scenario-1 Direct transfer secnario-2 transfer through an investment banking house Scenario-3 transfer through a financial intermediary 3- FALSE 1- check all that apply statement 1 statement 3 statement 4 2- scenario-1 Direct transfer secnario-2 transfer through an investment banking house Scenario-3 transfer through a financial intermediary 3- FALSE

ID: 2820293 • Letter: F

Question

Financial intermediaries frequently offer a variety of benefits to both the borrowers attempting to raise capital in the financial markets and the economies that allow them to function Read the following statements. Then, identify the benefits or services that may be provided by a financial intermediary. Check all that apply. Check all that apply. Financial intermediaries have the marketing staff with which to resell the borrowers debt or equity securities to interested savers (lenders or investors) Financial intermediaries raise the net cost of borrowing by requiring additional borrower- identification costs and reduce the return that can be earned by savers Financial intermediaries tend to offer a variety of related financial services, which reduces the overall financial costs to their customers. Since financial intermediaries separate the borrowing and the savings activities, they eliminate the need for a simultaneous desire to save and borrow between the two parties involved in either a direct transfer or an indirect transfer made via a middleman. Financial transfers of capital generally take one of three forms. In the following table, correctly identify the methods of transfer being described. Transfer through an Transfer Investment through Direct Transfer Banking House Financial Intermediary Scenario Two years ago, Blake started a new business. Now he needs additional capital to finance additional growth and is meeting with a group of "angel" investors. If they decide to make the loan, they will do so directly, without the use of a middleman or other intermediary International Imports, Inc. would like to borrow additional debt capital. The firm has hired a firm to assist in the sale of a new issue of 10-year bonds. Universal Exports, Inc. holds cash balances in an institution that, in turn, loans out the funds to other individuals and companies

Explanation / Answer

check all that apply

statement

scenario-1

Direct transfer

secnario-2

transfer through an investment banking house

Scenario-3

transfer through a financial intermediary

FALSE