Podcast
Questions and Answers
What is the primary financial goal of a firm?
What is the primary financial goal of a firm?
To maximize shareholders' wealth or value
Explain the importance of financial markets for financial managers.
Explain the importance of financial markets for financial managers.
Financial managers should make sound decisions keeping in mind how financial markets work and operate.
Describe the capital allocation process in an efficient economy.
Describe the capital allocation process in an efficient economy.
Capital flows efficiently from those with excess capital to those who need it.
What are direct transfers in the capital allocation process?
What are direct transfers in the capital allocation process?
Explain indirect transfers through an investment bank.
Explain indirect transfers through an investment bank.
What risk do investment banks face in indirect transfers?
What risk do investment banks face in indirect transfers?
What is the main role of firms in financial markets?
What is the main role of firms in financial markets?
What is the key role of investors in financial markets?
What is the key role of investors in financial markets?
What is the primary responsibility of the government in financial markets?
What is the primary responsibility of the government in financial markets?
What is the relationship between firms and financial institutions in terms of funds?
What is the relationship between firms and financial institutions in terms of funds?
What is the financial behavior of individuals in terms of savings and borrowing?
What is the financial behavior of individuals in terms of savings and borrowing?
How do governments indirectly borrow funds from financial institutions?
How do governments indirectly borrow funds from financial institutions?
What role do financial markets play in making the economy more efficient?
What role do financial markets play in making the economy more efficient?
How do financial markets help firms raise capital?
How do financial markets help firms raise capital?
Explain how financial markets support commercial transactions.
Explain how financial markets support commercial transactions.
What is the purpose of stock, bond, and money markets?
What is the purpose of stock, bond, and money markets?
How do derivatives contracts help in risk management?
How do derivatives contracts help in risk management?
In what way do financial markets help individuals in making purchases like homes or cars?
In what way do financial markets help individuals in making purchases like homes or cars?
What are physical asset markets also known as?
What are physical asset markets also known as?
Define future markets.
Define future markets.
Explain money markets.
Explain money markets.
What are capital markets?
What are capital markets?
Differentiate between primary markets and secondary markets.
Differentiate between primary markets and secondary markets.
What is the purpose of international capital markets?
What is the purpose of international capital markets?
What type of financial institution serves a variety of services to savers and borrowers, including checking services that significantly influence the money supply?
What type of financial institution serves a variety of services to savers and borrowers, including checking services that significantly influence the money supply?
Which large conglomerate combines many different financial institutions within a single corporation, such as Citibank, an investment bank, and insurance companies?
Which large conglomerate combines many different financial institutions within a single corporation, such as Citibank, an investment bank, and insurance companies?
What type of cooperative associations provide funds to borrowers and are often the cheapest source of funds available?
What type of cooperative associations provide funds to borrowers and are often the cheapest source of funds available?
What are retirement plans funded by corporations or government agencies for the benefit of their employees?
What are retirement plans funded by corporations or government agencies for the benefit of their employees?
Which financial institutions take savings from clients' annual premiums and invest these funds in various assets to make payments to beneficiaries?
Which financial institutions take savings from clients' annual premiums and invest these funds in various assets to make payments to beneficiaries?
What type of corporations accept money from individual or corporate savers and then use these funds to buy stocks, bonds, or debt instruments?
What type of corporations accept money from individual or corporate savers and then use these funds to buy stocks, bonds, or debt instruments?
