Affordable Housing Crisis- Assignment

Role of Central Banks and Moral Hazards       Central banks have injected moral hazard into global markets, which skews investor behavior toward risky assets because the downside of risk is being underwritten by the central banks. Thus, bubbles occur, and bubbles are bound to burst.   Provide an in-depth analysis of the case provided. Analyze the facts, identify key legal issues with supporting opinions, and arguments.

Select a case of weak regulatory framework within a financial institution which resulted in the demise of the institution and:i. Outline and discuss two (2) ways the regulatory bodies’ timely intervention could have prevented such a situation? ii. How effective do you think the response was to such a crisis?  iii Outline and discuss two ways/actions that could have been pursued to further strengthen the regulatory environment?

Question 14 An example of a government-based approach to improve the quality of information in financial markets is government safety nets financial news networks government-directed credit mandatory disclosures

Question 12 An early sign that financial innovation might be leading toward a financial crisis is deleveraging debt deflation a credit boom a bank panic

https://www.nytimes.com/2020/08/19/us/flint-water-crisis-settlement.html   https://www.npr.org/2020/08/20/904258763/michigan-will-pay-600-million-to-flint-residents-over-water-debacle (a) How did the community's economic status influence the dismissal and failure of leadership to respond to the emerging crisis? (b) How will/does this crisis affect the Flint community, both short-term and long term?

Questions a) regulations of Labuan offshore financial centers? b) Explain the regulatory initiatives by offshore centers done in dealing with various risks faced by the offshore banking industry? c) The relationship between offshore banking and money laundering?

(b) Discuss the roles of financial intermediaries in solving adverse selection and moral hazard.Support your answers with real-life business examples.

PART D) Risks and Benefits of CBDCS • Some perspective of political economy would be helpful. What are the updated roles of governments, central banks, regulatory institutions?

“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.

18. In order to reduce the ___________  problem in loan markets, bankers collect information  from prospective borrowers to screen out the bad credit risks from the good ones before the contract is signed.   Question 18 options:   a)  adverse lending.   b)  moral hazard   c)  moral suasion.   d)  adverse selection.

How did the Dodd-Frank Act help increase accountability and oversight after the global finanicial crisis?

Identify a financial market and describe it using an economic approach. What are the goods exchanged? How is the supply set? How is the demand set? What are the constraints that are potentially preventing the market reaching an equilibrium? Reflect on how your new understanding of fundamental economic functions can apply or will apply to your professional experience. Identify a key area where you could apply this new knowledge and explain how it will help you to provide a better analysis of the economics forces at work.

Critically explain each one of the following financial terms: Asymmetric information Moral hazard Adverse selection Give examples in each case to illustrate your answer.

Future Challenges and Adaptations 16.1. Anticipated Challenges for the UK Financial System 16.2. Potential Changes in Regulatory Frameworks 16.3. Innovations and Adaptations for a Changing Landscape with a case study inclusion regarding future challenge and anticipation for uk

Discuss if and how the demand and new supply curves for renting offices will move and what specific factors may cause such movements when the coronavirus crisis ends and the economy returns to growth.

Please answer questions 1 and 2

Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open Ended vs Closed Ended Mutual Funds c) Moral Hazard and Adverse selection Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance? Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons. Q4: What value do mutual funds add for individual investors and how? Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis. Q6: Last year Fauji Fertilizer Company Limited (FFCL) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%? Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market…

QUESTION 2 Provide a detailed analysis of the impact of informational asymmetries on financial markets and the main remedies enacted by financial institutions to alleviate such problems.

Indicate, describe and analyse areas of tax laws that should be considered in a financial plan. Give examples of instances tax laws were used in financial plans in Canada

a)Corporate governance system differences on ownership concentration, identity of owners and regulatory/legislative framework  b)Explain corporate governance system differences among countries

Discuss the effect that the COVID-19 pandemic has had on credit creation, citing relevant examples.

explain the role of secondary data in gaining customer insights

7.

Define the Role and Coverage of Financial Institutions in providing credit t the Agriculture Sector in recent years.

Exposure refers to the degree to which a company is affected by exchange rate changes. The global economy, Zambia inclusive has seen the fluctuations in the key fundamental economic indicators such as inflation, interest rate and currency fluctuations. This has led to high level of exposures to MNC financial performance in both short   and long term. Discuss the effect of transaction, translation and economic exposures on multinational corporations.