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- Refer to the figure below: +16 +12 +8 Consumption Investment is more volatile than consumption. -12 Investment 16 -20 -24 1 2 3 41 2000 2 3 4 1 2 3 4 1 2 3 41 2 3 41 2003 2 3 4 1 2 3 41 2 3 4 1 2 3 4 2007 2001 2002 2004 2005 2006 2008 CALENDAR QUARTER Instructions: Enter your responses as a percent rounded to the nearest whole number. What was the range, in absolute value of percentage change, of the variation in quarterly growth rates between 2001 Q1 and 2003 Q4 of a. Consumer spending? % b. Investment spending? % CHANGE FROM PRIOR QUARTER (porcent)• Examine present values, future values, and efficient market hypothesis. • Synthesize knowledge of basic tools of finance. The asymmetric information problem:. 1. Identify whether each of the following is an example of adverse selection or moral hazard. A. Joe begins smoking in bed after buying fire insurance. B. Both of Susan’s parents lost their teeth to gum disease, so Susan buys dental insurance. C. When Gertrude parks her Corvette convertible, she doesn’t bother putting the top up, because her insurance covers theft of any items left in the car.Credit insurance; pls draw and explain how does that work ? What are the types of it ? Who are the market players ? Private sector insurers ? E.C.A ? Who are the main Associations in credit insurance ? Brief history of CI What are the benefits of CI ? What are the main services ? Pls explain. How does it help in international trade ? Pls indicate the role of it in managing credit risk ( consider the main services ) and in trade finance (how does it help ) as well ? How does that differ from factoring ? Why is it important in World trade financing ? ( A general remark )
- 1. What are the main origins of international financial crises? Explain each in detail.QUESTION 1 1. Why was commercial real estate performance in the private sector less volatile than publicly-traded REITS throughout the pandemic? a. Because there were fewer property sales, which led to a lack of price discovery b. Because private sector commercial real estate trades over an exchange, which can be inherently volatile c. Because "bid-ask" spreads in the private sector "narrowed" (came closer to one another), which in turn led to fewer property sales r d. None of the answer options1) What is a mortgage-backed security and what part did these play in the 2008 financial crisis? 2) Do you think we as banks, regulators, investors, and consumers have learned our lesson? (i.e do you think this could happen again?)
- “In view of the increase in complexity of banking activities, emergence of new risk factors andcontinuous change in financial landscape, there is a need for financial risk expertise to undertake riskassessment both at individual institution level as well as on a system-wide basis.” Required: Evaluate other frameworks that are critical in sustaining the safety and soundness of financial institutions apart from risk assessment.1. Should the biggest financial institutions be allowed to make as much revenue and profit as they want with little oversight from the U.S. Government? Why or Why not? Explain. 2. Please state your agreement or disagreement and explain why you agree or disagree for EACH statement below: A) The financial institutions understood the magnitude of the crisis B) The financial institutions understood that it was their practices that created the situation? C) The financial institutions cared and felt remorseful about the situation4. The foreign exchange market has a central transaction and clearing mechanism like that of the stock market. 5. IPO (Initial Public Offering) is a way of debt financing by a company. True or false. No need to explain just answer
- E3 The demand curve and supply curve for one-year discount bonds were estimated using the following equations: Bd Price=-2/5Quantity+990 Bs Price=Quantity+500 As the stock market continued to rise, the Federal Reserve felt the need to increase the interest rates. As a result, the new market interest rate increased to 19.65%, but the equilibrium quantity remained unchanged. What are the new demand and supply equations? Assume parallel shifts in the equationsProvide one sentence discussion of your understanding to the importance of each role of global financial institution by Stiglitz 1. Macroeconomic and microeconomics policy2. Consider an overlapping generations model with a pay-as-you-go pension system. The government collects the contributions from young generation and transfers them to old generation. d is the contribution from a young person to the pension system. b is the benefit received by old person. (a) Derive the following intertemporal budget constraint, b 1 + rt+1 C₁t + St C2t+1 1 + rt+1 (b) Derive the following saving function, 1 ·(wt – d) 2+p = = Wt d + 1+p (2 + p)(1+rt+1) - bl.