Questions from Financial Markets

Q: How does the liquidity premium theory of the term structure of interest

How does the liquidity premium theory of the term structure of interest rates differ from the unbiased expectations theory? In a normal economic environment, that is, an upward-sloping yield curve, wh...

Q: What is the relation between the coupon rate on a bond and

What is the relation between the coupon rate on a bond and its duration?

Q: What is the relationship between present values and interest rates as interest

What is the relationship between present values and interest rates as interest rates increase?

Q: How do FIs alleviate the problem of liquidity and price risk faced

How do FIs alleviate the problem of liquidity and price risk faced by investors wishing to invest in securities of corporations?

Q: How do financial institutions help individuals diversify their portfolio risks? Which

How do financial institutions help individuals diversify their portfolio risks? Which financial institution is best able to achieve this goal?

Q: What is meant by maturity intermediation?

What is meant by maturity intermediation?

Q: What is meant by denomination intermediation?

What is meant by denomination intermediation?

Q: What other services do FIs provide to the financial system?

What other services do FIs provide to the financial system?

Q: What types of risks do FIs face?

What types of risks do FIs face?

Q: Why are FIs regulated?

Why are FIs regulated?