Chat with AIExam 1: Functions and Roles of the Financial System in the Global Economy
What roles of the global financial system are being described in the items listed below?
(35) 
VerifiedA. Exxon Corporation issues new shares of stock to finance its expansion into foreign markets. Savings, wealth, credit functions
B. The Wiliams' family withdraws its bank deposit in order to purchase new furniture for their new home.
Savings, wealth, liquidity functions
C. Robert Enlow plans to purchase a new home in three years, but in the interim, he makes a loan to a friend who needs ready cash for a down payment on an automobile. Credit function.
What concept, institution or instrument is described by each of the phrases or sentences listed below?
(38) VerifiedA. Trading of loans and securities in which any individual or institution can participate. Open market
B. Mechanisms set up by society to trade newly issued loans and securities. Primary market
C. Set up to channel temporary cash surpluses into temporary loans. Money market
D. Immediately spendable cash. Liquidity
E. Assets minus liabilities held by an economic unit. Net financial wealth.
What roles of the global financial system are being described in the items listed below?
(34) VerifiedA. Deutsche Bank develops and offers to its customers a new savings plan that combines traditional bank deposits with the availability of shares in a growth-oriented mutual fund. Savings, liquidity and wealth functions
B. Randy Bose plans to retire in 18 months but elects to loan a portion of his long-term savings to his son
Robert who is starting a new business and has recently married. Credit function
C. The Greater Asia Insurance Corporation has managed to attract $100 million in annuity investments from savers over the past six months and plans to make a loan to Eastman Hotel Corporation,which is beginning construction on a series of luxury resorts in Honolulu and Singapore. Savings and credit functions.
What concept, institution or instrument is described by each of the phrases or sentences listed below?
(37) The U.S. savings rate is one of the lowest among major industrial nations because of the:
(36) Every year the volume of financial wealth is growing in the United States. In 2006 the total securities, deposits and other financial assets held by domestic nonfinancial businesses, households, the US government and foreign investors was
(35) In early 2006 it appeared that the annual US gross domestic product (GDP) would be around $11.5 trillion. What percentage of the GDP is saved?
(33) What roles of the global financial system are being described in the items listed below?
(32) Herman Gleep has built up total assets at the end of last year of $520,000. It consisted off a home valued at $350,000 and financial assets valued at $170,000. During this year his home appreciated by a -4% because of the contracting housing market, but his financial assets achieved a return of 6.5%. What is Herman's overall rate of return this year and what are his total assets worth?
(38) A major problem faced by Japan today is too little saving by its citizens.
(45) A major problem faced by Japan today is too much saving by its citizens.
(26) What functions of the financial system do the following transactions illustrate or represent? (Note: Some
transactions may involve more than one function. Be sure to identify all the financial system functions involved in each transaction.)
(46) In early 2006, more than $55 trillion in securities, deposits and other financial assets were held by domestic nonfinancial businesses, households and governments in the United States and represents their financial wealth. After subtracting the total debt owed by these groups, it leaves us with the net financial wealth of:
(39) What concept, device or instrument is described by each of the phrases or sentences listed below?
(35) Projections for 2006 indicated that personal savings for the year would be:
(37) 
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