Explain one example of how the banking system or the financial market failed and caused economic collapse

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: During the recession of 2008, it was suggested that some banks were “too big to fail” (TBTF). Under…

A: "Too big to fail" refers to a company or industry that is seen to be so established in the financial…

Q: The financial system must ensure the availability of efficient credit facilities to allow greater…

A: Credit Facilities: Credit facilities are loans that businesses take to run their operations. A…

Q: Do you think that the Fed should have bailed out large financial institutions during the credit…

A: The global financial crisis of 2008 was the largest crisis the world has weathered since the great…

Q: Why a cashless society destory the international finance system?

A: Cashless economy is, when there is no cash flow within an economy, all transactions must be…

Q: ancial institutio

A: At the large financial institutions,compensation practices were considered to be a key contributing…

Q: Match each of the following players in the financial system with the financial product(s) they are…

A: Commercial Banks deal in Bonds & Loans. The bonds generally include Fixed Deposit Bonds…

Q: Which of the following statements is correct? Banks that are too big to fail' are careful not to…

A: Banks are regulated by government authorities to make sure their stability, solvency, and compliance…

Q: The inadequacy of money supply circulating or available in the financial system makes the trading of…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: Key institutional players in the fight against money laundering include:   a. World Bank, United…

A: The process of money laundering is the concealment of the origin of huge stock of money earned from…

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: How do changes in interest rates impact the lending behavior of financial institutions?

A: Interest rates represent the cost of borrowing or the return on savings. They play a crucial role in…

Q: Savings Institutions? * a. They bridge the gap between the providers of funds and the demander of…

A: Answer in step 2

Q: What happens to people when a bank or buisness fails ?

A: If a bank fails, people demand their money from the banks and that actually worsens the situation…

Q: Explain why the existence of financial institutions can allocate financial resources better!

A: Good financial sectors mean banks and financial institutions have a major role to play in the health…

Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.