Finance questions

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Uvyny

Business Finance

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1. Identify the five principal markets and describe each briefly: a) b) c) d) e) 2. What is the basic function of finance (i.e. financial markets and financial institutions) in the overall economy? 3. a. Give a brief (30 words or less) description of "direct finance". b. Give a brief (30 words or less) description of "indirect finance". c. To which category – direct finance or indirect finance – do "financial intermediaries" belong? a. Give an example of how a financial institution such as a bank transforms assets and liabilities in regard to time b. Give an example of how a financial institution such as a bank transforms assets and liabilities in regard to risk. 4. 5. Name (no explanation is needed) three aspects of financial markets which financial regulation applies to. a. b. c. 6. Name and briefly explain one problem or limitation of financial regulation.
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Finance Homework

1

Finance Homework
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July 2018

Finance Homework

2
Question One

The five principle markets are made up of the following elements:
a) Management of customers
A customer is the end user who buys goods and services in order to satisfy their needs. In order
for a business to survive and expand in the market and make profits, it is compelled to increase
customers based on customers’ appetite for the firm’s products and services.
b) Understand the target market
Understanding the shopping habits of the target market is a key market principle. To understand
what your target market is, consider what your customer base is and what type of customer is
perfect. Then, follow your competitors and their goals and develop strategies to offset them.
Competitive strategies to achieve greater industry market shar...


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