Financial innovation contributes to:Question 9AnswerA.Economic stagnationB.Improved financial services and productsC.Increased risk in the financial systemD.Decreased efficiency
Question
Financial innovation contributes to:Question 9AnswerA.Economic stagnationB.Improved financial services and productsC.Increased risk in the financial systemD.Decreased efficiency
Solution
Financial innovation contributes to:
B. Improved financial services and products C. Increased risk in the financial system
Explanation:
B. Improved financial services and products: Financial innovation often leads to the development of new financial services and products. For example, the advent of digital banking has led to the creation of new services such as online banking, mobile banking, and digital wallets.
C. Increased risk in the financial system: While financial innovation can lead to improved services and products, it can also increase risk in the financial system. This is because new financial products and services can be complex and difficult to understand, which can lead to increased risk. For example, the financial crisis of 2008 was partly caused by complex financial products that many investors did not fully understand.
Similar Questions
How can financial innovation lead to financial crises?
Rising interest-rate riskA) increased the cost of financial innovation.B) increased the demand for financial innovation.C) reduced the cost of financial innovation.D) reduced the demand for financial innovation.
Which of the following tends to improve a country’s financial account?Group of answer choicesDecrease in investment of stocks and bonds from foreigners.Increase in its exports.Increase in investment of stocks and bonds from foreigners.Increase in its imports.
The term "Financial Sector Reforms" primarily refers to:Question 18AnswerA.Enhancing financial literacyB.Increasing taxationC.Improving the efficiency of the financial systemD.Expanding government control
One reason that investment in innovation is often considered to have increasing marginal returnsis becauseA) new products increase rms' pro ts.B) R&D costs are negligible relative to rms' total costs.C) innovation is mostly through "leaning by doing."D) new ideas or innovations can spawn ever further new ideas and innovations.E) after the initial investment is made, subsequent investors face more dif cult and expensiveproduction problems.imam.ah
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.