Below are given two cases showing the relationship between leverage growth and total assets growth drawn from the U.S. flow of funds data over the period 1963- 2006. Identify these two cases among the following alternatives: (1) households (2) non-financial, non-farm corporates (3) commercial banks (4) security brokers and dealers giving reasons for these relationships (negative, positive or no relationships) in both cases
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Below are given two cases showing the relationship between leverage growth and total assets growth drawn from the U.S. flow of funds data over the period 1963- 2006. Identify these two cases among the following alternatives: (1) households (2) non-financial, non-farm corporates (3) commercial banks (4) security brokers and dealers giving reasons for these relationships (negative, positive or no relationships) in both cases.
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- Need help. Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of asset-backed financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14. If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline if the value of the underlying asset suddenly and unexpectedly fell by $6? Instructions: Give your answer as a whole number.which of the following statement is true? interest rates on municipal bonds are on average higher than those of the U.S. government bonds with the same terms to maturity because municipal bonds are not as risky as the US government bonds. lower than those of the US government bonds with the same terms to maturity because municipal bonds are not as risky as the US government bonds lower than those of the US government bonds with the same terms to maturity because municipal bonds are not as liquid as the US government bonds. higer than those of the US government bonds with the same terms to maturity because municipal bonds are not as liquid as the US government bonds. lower than those of the US government bonds with the same terms to maturity because many local business prefers municipal bondsList and describe key functions performed by Treasurers of Financial institutions in primary markets when they participate in a public issue. Explain how treasurers manage the risk of information asymmetry within their respective financial institutions. 3. Outline the main risks Treasurers and Fund Managers deal with in managing their short- and long-term financial obligations.
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- The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. Year One-Year Bond Rate Multiyear Bond Rate 1 2.00% 2.00% 2 3.00% 3.00% 3 6.00% 5.00% 4 7.00% 7.00% 5 10.00% 8.00% The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) l Subscript 11 = (enter your response here)% l Subscript 21 = (enter your response here)% l Subscript 31 = (enter your response here)% l Subscript 41 = (enter your response here)% l Subscript 51 = (enter your response here)%Critically explain how Quantitative Easing (QE) by the Bank of England in recent years, via open market operations in the money markets, has impacted bond and stock, prices including housing prices in the capital markets in the United Kingdom. (Please include recent financial charts and tables to support your analysis) please provide havard referencingtraditional yield management strategies are most appropriate when? A. The service providers has a homogeneous target market B. Its target market is not price sensitive C. All members of the target market arrive at basically the same time D. Those who arrive early or reserve early are more price sensitive than those who reserve or arrive late E. All of the target market is equally price sensitive
- Explore the assertion regarding the state ofFinancial Markets, both globally and within the Caribbean region, evaluating whether they arecharacterized by market perfection or imperfection. Argue in favorthat markets are perfect , allowing for a comprehensive examination ofthe topic. To enhance the analysis of key points in the subject argument, it is imperative to employrelevant finance theories or concepts which either validate or refute the EMH. These concepts serveas a robust framework for understanding financial phenomena. By leveraging established concepts,one can systematically evaluate the evidence presented, thereby bolstering the argument'scredibility and depth.Explain how capital adequacy requirements may affect a commercial bank’s dividend payout and growth potential. If the bank anticipates a decrease in its capital adequacy ratio (capital to total asset ratio), what options are available to prevent the decline? What risks, if any, are there in each strategy? Use the following balance sheet to answer questions 5-8 ($000) Cash 21 Demand Deposits 550 Securities 369 Fed Funds (Borrowings) 151 Loans 400 Equity 89Describe some of Hamilton's contributions to U.S. financial policies.