Why were credit unions less affected by the sharp increase in interest rates in the late 1970s and early 1980s than the saving institution industry? What are the three types of finance companies and how do they differ from commercial banks?

Q: What has led to the downturn of the financial industry, and therefore the decrease of finance jobs?

A: The reasons for the downturn of financial industry and the subsequent recession is discussed below.…

Q: Which innovation has caused the most trouble for financial institutions that issue residential…

A: Answer: The correct answer is option A. Securitization.

Q: Advantage and Disadvantage of Non-stock savings and loan associations from private non bank thrift…

A: The association which is engaged in the non-stock, non-profits activities related to the business in…

Q: Which of the following is generally the least expensive source of funding? A) demand deposits B)…

A: Demand deposits refer to funds held in bank accounts that can be withdrawn by the account holder at…

Q: What factors led to the success of Grameen Bank?

A: The bank is a financial organization that accepts the deposits from the public in order to provide…

Q: Which of the following statements is NOT true? OSmall banks typically focus on the retail side O…

A: There are various types of banks in any economy, the broad classification can be specified as :…

Q: Why do federally guaranteed loans usually have the least risk for banks, List some popular…

A: Federal guaranteed loans are loans that are backed by the federal government, which means that the…

Q: How do corporate borrowers use interest rate or cross-currency swaps to reduce reduce the costs of…

A: Optimum Capital Structure Occasionally, some financial restructuring is required by a company to…

Q: Discuss how banks benefit when interest rates decrease?

A: Low-interest rate environment- It refers to the state of the economy when the risk-free rate of…

Q: what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM  in banking to  BANKS . Give an example

A: MORATORIUM- is an option available to borrower to defer the EMI payment. During the moratorium…

Q: The financial performance of both Commercial Banks and Savings Banks is measured using the Net…

A: The net interest margin is referred as the net benefit of lending which derived from the lending and…

Q: . What are some ways banks can state theircharges, and how should the cost of bankdebt be analyzed?…

A: APR is the annual percentage rate. APR is calculated by taking into consideration all other charges…

Q: What are the major expenses associated with making consumer loans? What is the average size of…

A: A Consumer Loan is a loan that banks provide to consumers in order for them to purchase domestic…

Q: Question 2 a) Explain the following different types of credit advances and when firms use it (i)…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: Which of the following statements is NOT true? O Small banks typically focus on the retail side  O…

A: Banking- A bank is a type of financial institution that lends money to customers and collects demand…

Q: Imagine that you are in the position of buying loans in the secondary market (that is, buying the…

A: Banks generally prefer secondary markets for lending purposes so that they can always have the funds…

Q: Why do you think banks are willing to offer savers higher rates of return if they agree to less…

A: Savers are those persons who deposit money in various deposit accounts for the purpose of earning…

Q: matic increase in bank holding companies?

A: The dramatic increase in bank holdingcompanies:Holding companies:The holding company is an…

Q: Banks improves the liquidity of the bank by

A: The correct answer is c. Generating additional income from investment

Q: Why do commercial banks, like Westpac and ANZ, engage in credit risk transformation? O a. The…

A: Credit risk transformation refers to the process through which banks and other financial…

Q: 1(A).Why did Lenders/Banks start to securitize mortgages (creating Collateralized Mortgages or Debt…

A: CMOs stand for collateralized mortgage obligations. CDOs stand for collateralized debt obligations.…

Q: Compared to other depository financial institutions, credit unions

A: Credit unions are non profit naking money cooperatives whose members can borror at lower rates from…

Q: How banks can improve their return on equity and what are its negative externalities.

A: RoE is ubiquitous in banks, serving as both an indicator of overall performance and a means of…

Q: Why do credit ratings change? How can these changes affect investors?

A: Credit ratings are assigned on the basis of extensive economic analysis by the credit rating…

Q: Why are credits and debits different for banks compared for personal finance usage?

A: In personal account, all expenses, assets, and losses will be debited. All incomes, liabilities, and…

Q: Are there any advantages to the equity-holders of banks from them engaging in short-term as opposed…

A: Equity holders enjoy the return from two sources i.e. from the company's end in the form of a…

Q: what is the impact on the Loanable Funds Market

A: Loan-able funds are the amount or the funds available in the loan market for the borrowers. These…

Q: What are two monetary policies that could be implemented by the central bank which would have the…

A: Federal bank achieve of economic growth by monetary policy by increasing or decreasing money supply.

Q: Do you think that IFRS 9 may make loans more expensive for borrowers?  Implementation of IFRS 9 will…

A: IFRS 9 follows the expected credit loss model, which regulated the provisioning to be done by the…

Q: Why are the banks reluctant to lend, and what should be done to increase bank lending?

A: Banks generally borrow and lend cash in the interbank loaning market so as to oversee the liquidity…

Q: Which one is not an incentive for a bank to securitize its mortgage loans? Reduce insurance premium…

A: The objective of the question is to identify which among the given options is not a reason for a…

Q: In managing credit risk for banks what are the two main concerns that banks have when lending money?…

A: Credit risk: It is the risk involved in receiving the interest and principal payments from the…

Q: What is the most important reason credit unions are able to offer lower loan rates and higher…

A: The question is asking for the primary reason why credit unions can offer lower loan rates and…

Q: What are the advantages and disadvantages of direct lending for the bank? How are banks reducing the…

A: Direct lending refers to a type of lending that is provided directly by the lender, such as a bank,…

Q: you think that the pandemic has impacted the ability of firms to raise

A: Pandemic have impact on whole business scenario and financial conditions.

Q: What are the advantages and disadvantages of direct lending for the consumer? What can banks do to…

A: Direct lending refers to a type of lending that is provided directly by the lender, such as a bank,…

Q: Which of the following decreases the likelihood of bank failures by keeping banks from making risky…

A: Option d is correct.

Q: Explain why traditional banking has been on the decline in recent years.

A: Traditional banking refers to banks that have a physical presence and are licensed to operate in the…

Q: In recent years, ‘direct lenders’ and ‘shadow banks’ have increasingly provided funding for…

A: The lending agencies are the financial institutions that provide funds to the public, business…

Q: Why are banks currently holding capital well above the minimum regulatory requirement?

A: Capital is the main and important ingredient of banks, without capital , we cannot run a bank,…

Q: The rise of securities markets and the expansion of intermediation by nonbanks has come partly at…

A: A "securities" are financial instruments that are of monetary value and are negotiable and tradable.…