Unit 2 Discussion

Which of the following regulatory events in the 20th century potentially influenced the financial sector? Passing of the Glass-Steagall Act Establishment of the Securities and Exchange Commission (SEC) Establishment of the Federal Reserve Banking System Repeal of the Glass-Steagall Act Securities Investor Protection Act passed

Read the following premise carefully and answer the questions specifically and in detail. You must answer the request with the correct information, showing that you understand and can properly apply the concepts. Try to address all the elements of each question and always express the answers in your own words. "Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those with a surplus versus those with a deficit creating a market for capital injection." 5. Explain the dynamics that are expected to occur between the different development policies in the injection of capital as instruments to promote growth, sustainability and economic stability of a country.

(Students should visit the SEC website, www.sec.gov, for supplemental resources.) List several provisions of the Sarbanes–Oxley Act that are designed to restore public confidence in the U.S. capital market system.

Is it necessary for the Federal Reserve to communicate the strategy and objectives of its monetary policymaking to financial markets and the public effectively? What challenges will the Federal Reserve face in these communications? Please provide your reasons for the questions.

Identify trends, examine financial market principles and standards, make judgments, and prepare recommendations or solutions. Be sure to explore issues of diversity and ethics as related to money markets. also Assess why money markets are of interest to an accountant and why organizations should also share this same concern.

What are some of the current challenges facing financial regulators?

Market participants, including financial institutions, fund managers and corporations, must understand monetary policy setting impacts on economic activity and business cycle. A central bank will typically implement monetary policy settings in order to achieve certain economic outcomes over a business cycle. In order to forecast future economic conditions and business activity, business managers therefore need to understand the business cycle. Briefly describe the principal monetary policy objective of the Reserve Bank of Australia and give examples of different economic indicators that may give an insight into the future stages of a business cycle.

Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institutions as investment banks, commercial banks, financial services corporations, credit unions, pension funds, life insurance companies, mutual funds, exchange traded funds, hedge funds, and private equity companies play a key role in facilitating these transfers. Identify the financial institution based on each description given in the following table: Description Financial Institution They underwrite, distribute, and design investment securities for corporations to help them raise capital.   Finacial Services Corporations,Commercial Banks, Investment Banks   They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns.     Life Insurance, Credit Unions, Pension Funds With the use of advanced investment techniques, these…