Pearson eText Economics of Money, Banking and Financial Markets, The, Business School Edition -- Instant Access (Pearson+)
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Chapter 13, Problem 1DAP
To determine

Based on the data in the St. Louis Federal Reserve FRED database:

  1. The number of mutual fund shares held by
  2. a. households and nonprofit organizations (HNOMFAQ027S), and

    b.financial businesses (FBMFTTQ027S)

  3. Which of the two organizations holds more assets?
  4. Which of the two categories has grown the most in percentage terms over the past five years?

Concept Introduction:

The St. Louis Federal Reserve is a site that offers a wealth of economic data and information, collected by its research division. It publishes data in the field of money and banking, macroeconomics, and international and regional economics.

Households and Nonprofit organizations hold mutual fund shares to help them reach a variety of financial goals, i.e. retirement, education, a home, or for an emergency. However, financial businesses have limited goals that can be achieved through mutual funds; rather they spread their risk by diversifying their portfolio.

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