The following are some of the instruments involved in the collapse of the US financial markets in the fall of 2008, EXCEPT: Subprime Mortgages. Mortgage Backed Securities. OCorporate Bonds. O Credit Default Swaps. hulu
Q: List and discuss the various reasons that contributed to the financial crisis that occurred in 2008
A: 4. The 2008 financial crisis can be largely traced to the burst of the housing bubble. The banks…
Q: List and discuss the various reasons that contributed to the financial crisis that occurred in 2008.
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Q: and explain the reasons of financial crisis 2008-2009. (at least 4)
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- Assume that Annovo Financial and Bennovo Financial were banks with the same financial condition, except that Annovo Financial had bought fewer CDSs that provided insurance against defaults on mortgages. (Note: Assuming that the companies are almost identical isolates the impact of the one difference.) If many homeowners began to default on their mortgages, Annovo Financial's financial condition would become better/worse than Bennovo Financial's condition. If most financial institutions were like Annovo Financial, financial institutions could be less/more confident in lending to each other, and a tight credit market would be less/more likely.Which of the following statements is incorrect?a. Holdings of liquid assets (or access to credit from financial institutions) reduce the likelihood of financial distress.b. Financial imbalances and asset price crashes have been the key source of recessions in the U.S. in recent past.c. The 1918-1919 Great Influenza pandemic did not lead to an economic depression, although it caused significant fatalities around the world.d. L-shaped recovery pattern in Greece in the aftermath of 2007-2009 global financial crisis was in part due to the unavailability of monetary policy tools to the Greek authorities (because of Euro membership)Deposit Insurance a. depositor indifference generates a moral hazard problem that encourages banks to engage in risky activities b. exists only in the USA, not in the other countries. c. It is a privately owned insurance company. d. successfully helped US to overcome the problems in 1980’s S&L crisis and 2008 Financial Crisis.
- Risk premium Maturity Real rate of interest Nominal rate of interest Income statement Net income Voluntary arbitration Explain and define twelve of the terms and concepts you are less familiar or understanding of i please write definatiins in 3 linesDuring the 2007-2009 period, the US government made its most dramatic interventions in financial markets since the 1930s. It has been argued that the current crisis could redraw the boundaries between government and markets. For some, “freer and more flexible markets will still do more for the world economy than the heavy hand of government” whereas for others “big banking crises are ultimately solved by early and decisive government action and financial regulation.” Evaluate these positions.The Great Recession in 2007-2009 is characterized by a/n * Stock market crash Subprime mortgage crisis Currency crisis Internet bubble
- Which of the following is (are) likely to lead to an increase in the demand for US bonds? a. All of the answers are correct b. Foreign interest rates decrease c. US government increases business taxes d. US interest rates decreaseSeveral factors may influence interest rates for individual securities in an economy like the United Kingdom. One such factor is inflation. Explain fully how the factor may influence interest rates of individual securities in an economy.The financial system in Jamaica has been the subject of much attention since the news broke of the alleged fraud at Stocks and Securities Limited (SSL). The governor of the Bank of Jamaica (BOJ) has been fielding calls from concerned investors, international financial institutions, and even other regional regulators concerning the impact of this situation and the negative media reporting would have on the stability of the financial system in Jamaica and the Caribbean region.The governor would like to preserve confidence in the financial markets and institutions and has decided to embark on a series of educational “road-shows” where he will address targeted stakeholders such as the American Chamber of Commerce (AMCHAM), investor groups and the media.In this regard, the governor has assigned your team of senior professionals employed at the Bank of Jamaica to prepare a presentation slide deck for his address. Give an overview of the structure of the Jamaica financial systemThe role of…
- Regarding the difference between interest based finance and Mudaraba finance, which one among the following sentences is false: a. Interest based finance involves depositors, borrowers, and business venture b. The interest based finance borrower receives 100% of profit from business ventures. c. In Tier one Mudaraba, business venture is the Mudarib d. All the answers are correctexplain why Emerging Market Economies plays a crucial role in the financial marketThe spread between interest rates on low quality corporate bonds and U.S. government bonds Question 10 options: 1) narrowed significantly during the Great Recession. 2) widened significantly during the Great Recession. 3) narrowed moderately during the Great Recession. 4) did not change during the Great Recession.
