Eco 316 Week 1 Essay
This work of ECO 316 Week 1 Chapter 1 Introducing Money and the Financial System consists of:
1.1 Multiple Choices
1) All of the following were events in the financial world in the early 2000s EXCEPT
2) The financial system is primarily a means by which
3) Which of the following is NOT a financial instrument?
4) If you buy a bond issued by Intel, the bond is a(n):
5) Why would a saver with $10,000 be more likely to put it into a bank account than to lend it directly to a borrower?
6) Formerly in Eastern Europe and the Soviet Union, funds were transferred between savers and borrowers primarily through the
7) The experiences of Eastern Europe and the former Soviet Union have demonstrated that
8) …show more content…
Which of the following is NOT a key financial service provided by the financial system?
9) Economists define risk as
10) Economists define liquidity as
11) Which of the following assets is the most liquid?
12) By providing and communicating information, the financial system
13) Which of the following statements is correct?
14) The financial system accounts for about what percentage of the U.S.
economy's value added (GDP)?
15) The average pay for jobs is highest in which of the following sectors?
16) The "international capital market" refers to
17) During the past twenty years
18) The bond market is important because
19) Which of the following is NOT a financial intermediary?
20) The main role of financial intermediaries is to
21) A bank lending depositors' money to a local business and a pension fund investing contributions in shares of a company are similar financial activities in that
22) Which of the following is a trend towards globalization that has taken place since the 1980s?
23) Which of the following was an important consequence of the regulatory reforms that follo...
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It's important to get familiar with the teachers you have when you start your classes. Be sure you know where they have their offices and understand how to get in touch with them easily. You must develop good relationships with your professors so that you will feel comfortable talking with them if you need help or an exception on a due date.
Economics - General …show more content…
Economics Week 1 Should You Invest Short Term?
- Week1 DQ1 ECO316 What are the implications of a U.S. policy to “bail out” firms and heavily subsidize the economy? How could such a policy create inflation and higher interest rates? If you have cash available should you wait until interest rates rise? Treasury Inflation Protection Bonds - Week1 DQ2 ECO316 Week 2 New Product, Will I Be Rich? -Week2 DQ1 ECO316 My company just came out with a new product? Should I buy a bunch of company stock and get rich? What are the pros and cons of such an investment?
Mutual Fund Regulation - Week2 DQ2 ECO316 From Chapter 12, complete problem 13 (page 276): Describe how mutual funds provide services related to risk sharing and liquidity. Distinguish a mutual fund from a bank. What do the differences you highlighted imply about the need for regulation of mutual funds as opposed to banks? Week 3 Exchange Rate Risk - Week3 DQ1 ECO316 From Chapter 16, complete problem 13 (page 382): Relate the problem of exchange rate risk in international banking to interest rate risk in domestic banking. On the basis of your understanding of interest rate risk, suggest strategies for managing exchange rate risk in international
banking.
Should I Expect a Bail Out? - Week3 DQ2 ECO316 From Chapter 15, complete problem 19 (page 363): Suppose that you manage a small SL that has a net worth of –$50 million. You fear that within two years, regulators will discover that your firm is insolvent and will shut you down. You have two possible investment strategies: (a) continue to operate as you have been, offering market interest rates on CDs to finance mortgage loans, or (b) offer higher than market interest rates on CDs and use the increased funds to speculate in junk bonds and real estate. Your analysis tells you that strategy (a) has a 10% chance of losing $10 million and a 90% chance of gaining $20 million, with an ex...
1.1 Multiple Choices
1) All of the following were events in the financial world in the early 2000s EXCEPT
2) The financial system is primarily a means by which
3) Which of the following is NOT a financial instrument?
4) If you buy a bond issued by Intel, the bond is a(n):
5) Why would a saver with $10,000 be more likely to put it into a bank account than to lend it directly to a borrower?
6) Formerly in Eastern Europe and the Soviet Union, funds were transferred between savers and borrowers primarily through the
7) The experiences of Eastern Europe and the former Soviet Union have demonstrated that
8) …show more content…
Which of the following is NOT a key financial service provided by the financial system?
9) Economists define risk as
10) Economists define liquidity as
11) Which of the following assets is the most liquid?
12) By providing and communicating information, the financial system
13) Which of the following statements is correct?
14) The financial system accounts for about what percentage of the U.S.
economy's value added (GDP)?
15) The average pay for jobs is highest in which of the following sectors?
16) The "international capital market" refers to
17) During the past twenty years
18) The bond market is important because
19) Which of the following is NOT a financial intermediary?
20) The main role of financial intermediaries is to
21) A bank lending depositors' money to a local business and a pension fund investing contributions in shares of a company are similar financial activities in that
22) Which of the following is a trend towards globalization that has taken place since the 1980s?
23) Which of the following was an important consequence of the regulatory reforms that follo...
To download this material Click this link - https://bitly.com/1wyRfvA
It's important to get familiar with the teachers you have when you start your classes. Be sure you know where they have their offices and understand how to get in touch with them easily. You must develop good relationships with your professors so that you will feel comfortable talking with them if you need help or an exception on a due date.
Economics - General …show more content…
Economics Week 1 Should You Invest Short Term?
- Week1 DQ1 ECO316 What are the implications of a U.S. policy to “bail out” firms and heavily subsidize the economy? How could such a policy create inflation and higher interest rates? If you have cash available should you wait until interest rates rise? Treasury Inflation Protection Bonds - Week1 DQ2 ECO316 Week 2 New Product, Will I Be Rich? -Week2 DQ1 ECO316 My company just came out with a new product? Should I buy a bunch of company stock and get rich? What are the pros and cons of such an investment?
Mutual Fund Regulation - Week2 DQ2 ECO316 From Chapter 12, complete problem 13 (page 276): Describe how mutual funds provide services related to risk sharing and liquidity. Distinguish a mutual fund from a bank. What do the differences you highlighted imply about the need for regulation of mutual funds as opposed to banks? Week 3 Exchange Rate Risk - Week3 DQ1 ECO316 From Chapter 16, complete problem 13 (page 382): Relate the problem of exchange rate risk in international banking to interest rate risk in domestic banking. On the basis of your understanding of interest rate risk, suggest strategies for managing exchange rate risk in international
banking.
Should I Expect a Bail Out? - Week3 DQ2 ECO316 From Chapter 15, complete problem 19 (page 363): Suppose that you manage a small SL that has a net worth of –$50 million. You fear that within two years, regulators will discover that your firm is insolvent and will shut you down. You have two possible investment strategies: (a) continue to operate as you have been, offering market interest rates on CDs to finance mortgage loans, or (b) offer higher than market interest rates on CDs and use the increased funds to speculate in junk bonds and real estate. Your analysis tells you that strategy (a) has a 10% chance of losing $10 million and a 90% chance of gaining $20 million, with an ex...