Brooklyn College . Econ 3320 . Spring 2017Due Date: 4/5

As competition increased between savings and loans, banks, and credit unions, banks were eager to attract loan applicants in order to increase revenue and compete with other financial institutions. Jack S. Light, the author of Increasing Competition between Financial Institutions, said in his book that “commercial banks are diversifying their assets toward higher percentages of mortgages and consumer loans, and thrift institutions are seeking authority to diversify their loan structures. Moreover, mounting pressures are working toward, and have partially succeeded in, changing the authority of thrifts to include third-party payment accounts similar to commercial bank demand deposits.” (Light) Because of this eagerness to bring in new clients, they were willing to give out loans without checking into the financial stability of the borrower or the business that was requesting the loan. Unfortunately since the banks didn 't look into their clients’ financials adequately, many clients defaulted on their loans because they could not afford the payments, especially when balloon payments started.

Humanities: Hamanities classes are all about the human. These types of classes focus on cultural values, history and Art.

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting:

I am applying for a M.Sc. in Health Economics at the University of York in the U.K. This program of study will provide an opportunity to compare efficient health systems in the US, UK and Australia with the goal of identifying areas for improvement both from a cost as well as the health utilization perspective.

people's need for extra funding has led to the extension of credit to large segments of the population who were previously deemed unqualified. However, some lenders have tried

Asymmetric information is defined by a situation in which one party in a transaction has more or superior information compared to another. (Asymmetric information) This often happens in transactions where the seller knows more than the buyer, but the reverse happens as well. Potentially, this could be a harmful situation because one party can take advantage of the other party's lack of knowledge. In the healthcare world, this can happen when the patients know very little about what the doctors give them so the patient “puts his trust in doctor’s wisdom and his money in doctor’s pocket.” (Frakt)

The following is a plan on two consecutive lessons in Year 8 Economics. The curriculum covers the ‘participation and influences in the market place’, and the students will learn how resources are allocated through market exchange and the role of consumers, producers and the government in a market economy (School Curriculum and Standards Authority [SCSA], n.d.). The primary goal of these two lessons is to explain why well-defined private property rights and the enforcement of law by the government are key to market exchange.

Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is the kind of decision that can be made at the margin? a. whether or not to hire new workers b. whether or not to go on a vacation c. whether or not to build an extra room on a home d. whether to have a dog or a cat as a pet 2. How would you describe an economy that uses its resources to make the greatest possible number of goods and services? a. efficient c. globally aware b. using opportunity cost well d. underutilized 3. A nation’s automakers install new robotic machinery to build cars.

From the data discovered based on the increase of technology, it provided an understanding of the traditional process of being granted or providing loans and mortgages. Banks traditionally grant loans to individuals or businesses that meet specific credit requirements and would receive periodic payments. This process continues until the loan is fully paid off. Due to the increase in technology, banks were able to lower their costs for transactions by securitizing loans electronically. This innovation allowed them to bundle up all small loans into a standard debt security, which then could be bought and sold in the financial market. This led to a structured credit product offering that generated large cash flows from a collection of underlying assets with certain risk management. Investors had the opportunity to pick and choose what they wanted to purchase depending on their likes and

* Not only do borrowing and lending rates differ due to taxes and transaction costs, but some individuals are screened out of legitimate credit markets altogether due to informational asymmetries

As technology improves, the wide use of “hard information”, such as the borrower’s credit history, reduces informational asymmetries. Therefore, long-distance small business lending is easier (Frame, Srinivasan, \& Woosley, 2001; Petersen \& Rajan, 2002). However, even with the use of credit score data, collecting ``soft information" still helps local lenders control risks to avoid delinquency (DeYoung, Glennon, \& Nigro, 2008) and provides informational advances in offering more favorable rates (Agarwal \& Hauswald, 2010).

Another feature of financial innovation is in its ability to transfer risk and systematically address asymmetric information issues. The way in which it allows this to

Bank regulation plays a vital part in the economy today and can be attributed for a lot of its success. It has even been taken to the extent of individuals claiming bank regulation to be the backbone of our modern day economy. To fully understand this topic it is first important to define what bank regulations are. Bank regulations are a kind of government regulation that makes banks liable to certain requirements, restrictions and guidelines. Bank regulation includes determining specific regulations and guidelines to oversee all of the activities and operations of banking organizations. Banking regulations can vary widely between nations and can even be changed due to certain jurisdictions. However, even though they can differ, most

According to Industry insider’s opinion focusing on big lenders had damaged the reserves of banks after numerous instances of loan defaults. More than half the banks in the country are at risk of becoming bankrupt after losing their capital reserves to high risk big loans. Loan defaults have damaged the banking sector,

Information Asymmetry can be described as one side of a transaction having more knowledge of the product than the other. This could go both ways. The consumer may know more or the seller may know more. For instance, in the 70’s, the seller had a huge advantage over the consumer. Because of this, consumers were making purchase decisions that were very high in price. It was harder for the consumer to bargain prices back then because there was no way of knowing whether or not you were getting a good deal or being fed false information. Jumping back to today’s world, if a consumer is not sure whether or not they are getting a good deal or not, they may look up prices for the same product sold by a different merchant. Asymmetric information has a huge impact on decisions people make about where to purchase a product. But, even though this sounds like it only hurts the merchant, there is an advantage for the merchant. In today’s world we can obtain information from the customers.