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What are some similarities that you can identify between the US housing market before the financial crisis in 2007-08 and the current Canadian housing market?
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- How did a decline in housing prices help trigger the subprime financial crisis that began in 2007? Explain.By roughly how much did housing prices fall during the financial crisis? what about the stock market?Define the following terms and explain why they were important during the housing and credit crisis of 2007-2009 a.Securitization b. Subprime loan c. Asset write-down
- In periods when home prices declined substantially, some homeowners blamed the Central bank. In other periods when home prices increased, homeowners gave credit to the Central bank. How can the Central bank have such a large impact on home prices? How could news of a substantial increase in the general inflation level affect the Central bank’s monetary policy and thereby affect home prices?What current rate environment is the US currently in by historical standards? (LOW, HIGH, AVERAGE) What are the expectations for rates in the US over the next year? How will this impact businesses borrowing money (debt)? What do you observe in day-to-day life regarding current inflation?How do financial markets that run freely and efficiently affect the standard of living in a country?
- Which of the following was part of the U.S. government’s response to the credit crisis? a) Troubled Asset Relief Program (TARP) b) Housing and Economic Recovery Act c) Homeowners’ Mortgage Guarantee Act d) Troubled Asset Relief Program (TARP) AND Housing and Economic Recovery Actexplain how Quantitative Easing (QE) by the Bank of England in recentyears, 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.Suppose the Australian government has announced tax cuts for the business sector. Using the loanable funds model, explain how this will impact the supply of and demand for loanable funds and the interest rate in Australia.
- You are Chief Investment Officer of ABC Inc., Canada based company. If the Canadian dollar is week in recent days but you expect the Canadian dollars will be stronger over time, how will these expectations affect your investment decision in US securities? Will you invest in US securities? Why?impact of the global financial crisis of 2008-2009 Shenkar, O & Luo, Y (2007) International business 2nd ed Thousand Oaks, CA: Sage Publications Evaluate the impact of the global financial crisis of 2008-2009 on the economies of industrialised countries and emerging markets What effect do problems like these have on attitudes towards free trade?What information would one use to determine the type of economic system that a country has? (Multiple choice) 1. The information needed would be the rate of inflation and the gross domestic product figures. 2. The information needed would be the breakdown on who owns the business in the country and how much control the government has upon business regulations, taxes, etc. 3. The information needed would be the gross domestic products figures and consumer price index figures.
