Secondary Market Essay

15. What is the primary role of the Federal Reserve? What is the significance of this role?

Using Sources A, B, and C and your own knowledge account for the founding of the U.S. Federal Reserve and analyze how its role in economic policy has developed since then.

Assuming the Fed chooses to shrink the money supply, explain how each of the three tools would be used. If the fed chooses to shrink the money supply

Each student is to select research question related to money and banking and develop a well written paper that provides insight into the topic. The goal is to obtain a better understanding of the topic, while relating the identified topic or concept with real world scenarios.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

4. Critical Thinking: All states, of which I am aware, require automobile owners to insure their vehicle.  Yet, studies show that having insurance actually increases the likelihood of an accident and increases the likelihood of a car / bicycle accident.  Discuss why this is so.  Who is protected and who is harmed by required automobile insurance?

Banks are institutions in which people put their money for safekeeping, to save, to use to pay their bills, or to earn interest on. Banks are allowed to use that money to make loans and earn interest for the bank's’ owners. Different types of banks offer different types of services. For example, commercial banks originally just served businesses, and savings banks and credit unions were used by individuals, especially those who couldn’t qualify for loans at regular banks. This is no longer the case. Although commercial banks and thrift institutions used to serve different purposes, today they all offer many of the same types of services including bank accounts, loans, credit, certificates of deposits (CDs), and much more.

13. Why are P&C insurers dependent on investment yields? Is this an argument for changing how this industry operates and/or how we regulate the industry? Explain

Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.

Guided Response: Review the discussion board posts of your classmates. Analyze the difference between market structures. Compare your response to those of your classmates. Respond to at least two of your classmates. Discuss the way profits vary based on market structure.

Monetary development is something that everybody around the globe battles with ordinary. A great many people are unmindful in respect to what 's genuinely happens in the economy as to expansion, unemployment, and loan costs; these things are all directed by a national bank called the Federal Reserve System. The arrangement that I will talk about in this paper chooses if unemployment, hobby, and swelling declines or increment is fiscal strategy. Money related arrangement chooses what value a man pays for a thing at the store, the amount of premium a man will get charged on an advance for an auto. These are all things that no one genuinely asks themselves, a great many people simply search around and pick the best value or the best financing

17) Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should

William Deresiewicz claims that in the neoliberalism world we live in today, the market mentality drives students to attend universities for a commercial purpose of ultimately striving for higher paying careers, opposed to going to school to learn and think in open ended ways. Deresiewicz believes “college is seldom about thinking or learning anymore” (29) because “elite American universities no longer provide their students with a real education, one that addresses them as complete human beings rather than as future specialists” (26). This article describes how students are most interested in practicing the majors that correspond with the highest salary jobs; Deresiewicz advocates “the most popular majors are the practical, or, as Brooks might say, the commercial ones: economics, biology, engineering, and computer science” (27). In today’s world, parents invest in college with hopes to make a larger investment back due to that fact that an individual’s worth in society is based on their wealth. Deresiewicz conveys that majority of the students will study a “practical” career because those fields have more available, higher paying jobs. Students no longer attend college to question and reflect on the world, but rather to rise on the social ladder; “it is not the humanities per say that are under attack. It is learning: learning for its own sake, curiosity for its own sake, ideas for their own sake” (27). Deresiewicz then advocates that student’s intentions for participating

2) Which of the following do NOT enhance control of publicly traded firms by select groups of shareholders?

#3: By operating under a fractional-reserve system, banks can create money. When banks hold only a fraction of deposits in reserve, banks create money. They are able to do this by making new loans, and charging interest.