Why do bubbles form, and how can they turn into financial crises?

Q: What is the relationship between risk and return in finance? Why does this relationship hold in the…

A: A return refers to the additional net revenue received from the investment. Risk refers to the…

Q: how is the financial industry within the Caribbean better  off because of social networking sites?

A: Basics :- Caribbean area is of islands. There is moderate potential of growth than giant countries…

Q: 2. Some Economists argue that one of the reasons that economies in developing countries grow so…

A: Various economists develop findings and theories using different aspects of society. Some of them…

Q: Some economists suspect that one of the reasons economies in developing countries grow so slowly is…

A: The financial markets are the markets where the financial institutions help to channelize the flow…

Q: Some people think that financialmarket transactions should be taxed. What are the arguments for and…

A: A financial transaction is a contract between a buyer and a seller to exchange goods, services, or…

Q: How did higher returns securities in the secondary mortgage market contribute to the liquidity…

A: The 2008 financial crisis began in earlier years with economical credit and lending of tax standards…

Q: In Vietnam now are striving for reaching more clients and customers by eliminating transaction fees,…

A: There are many risks that a financial institution may pose, like transaction risks, credit risks,…

Q: Explain the ways in which financial institutions manage credit risk.

A: Credit: This term has numerous implications in the financial world, however, acknowledge is, for the…

Q: Some charge that the Crisis of 2008 was caused by the greed of Wall Street firms and other bankers.…

A: The crisis of 2008 was a very serious crisis and the economy all around the world had to face the…

Q: In our current financial system in the United States, Americans need "money" issued by commercial…

A: A commercial bank basically refers to a type financial institution that accepts deposits, offers…

Q: Identify which item is not one of the six parts of the financial system. Answer a. Credit cards b.…

A: A financial system is a group of institutions that authorize the exchanging of money, such as banks,…

Q: What is the main purpose of financial regulation? What kind of instruments may a government use to…

A: Financial Regulation : Financial Regulation can be defined as a form of regulation, laws or rules…

Q: why do we need banks and financial institutions

A:

Q: Why would haircuts on collateral increase sharply during a financial crisis? How would this lead to…

A: Haircut means the disparity b/w the amount of a loan & collateral which is set up for it. For…

Q: What are the disadvantages of using loans to financialinstitutions to prevent bank panics?

A: A bank panic is a situation where there is a sudden withdrawal of cash from banks or any financial…

Q: Question: Explain, using examples, the importance of financial intermediation to the flow of funds…

A: An economic system is a network that establishes economic relationships among individuals in…

Q: What are the seveb major types of financial institutions as of today?

A: Financial Institutions  Financial institution refers to the institutes which provide the services…

Q: Why do credit spreads risesignificantly during a financial crisis?

A: Credit Spread refers to the difference in the yield obtained on financial fixed income instruments…

Q: EXPLAIN DYNAMICS OF FINANCIAL CRISES

A: In the financial crises, resource costs see a precarious decrease in worth, organizations and…

Q: How the lemons problem could cause financial markets to fail? Explain it with using your own words,…

A: In perfectly competitive markets, the information is equally shared by the economic agents-…

Q: They act as mediators between two parties: those who supply funds and those who seek them. * A.…

A: Companies that deal in financial and monetary transactions are classified as financial institutions.…

Q: With reference to examples, discuss the main causes of financial crises in emerging markets.

A: The financial crisis is an economic situation in which asset prices are dropping rapidly, households…

Q: How would a financial manager's role in a corporation increase/decrease if the rate of inflation in…

A: Inflation has its own pros and cons. Consumers are worse-off with inflation but investors can enjoy…

Q: Explain the reasons for the emergence of financial crises in the world and what measures were taken…

A: Concept of Financial Market Asset prices plummet, firms and individuals are unable to pay their…

Q: What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give…

A: Financial market disruption caused by decreasing asset values and insolvency among debtors and…

Q: What are the roles of banks in the financial system?

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: 24. Financial institutions that cut back on their lending are engaged in A) liability management B)…

A: In an economy, lending refers to transferring excess funds of an individual or institutions to the…

Q: What were the implications of the crisis on the financial industry? (Savings and Loans crisis in the…

A: The Savings and Loan Crisis (S&L) was a long-drawn-out financial crisis. Between 1986 and 1995,…

Q: what do you think are the main reasons that led to the subprime crisis of 2007/ 2008?

A: The 2007-08 financial crisis, known as the subprime mortgage crisis, was a significant outflow of…

Q: What are the factors that typically cause a financial crisis?

A: The financial crisis is a situation in the economy in which the price of asset decline steeply,…

Q: Why emerging market economies is important in financial markets?

A: A financial market is considered as the market in which different people trade in financial…

Q: When financial crisis hit the nation, how it can impact on the financial market and what is the…

A: A financial crisis is the market situation in which the value of the price of assets see a steep…

Q: What is Supplies of Liquid Funds? What are Laws Limiting Bank Lending and Risk?

A: Liquid funds are mutual funds that invest in assets having a residual maturity of up to 91 days.…

Q: Explain why financial markets are increasingly becoming global.

A: We have show that as an Financial markets have become international and highly active, with…

Q: If bad credit risks are the ones who most actively seek loans, then financial intermediaries face…

A: When the parties involved in any economic activity do not have same or symmetric information about…

Q: Q1. The importance of studying financial markets and financial institutions for the citizens.…

A: The primary function of the financial market is to facilitate the movement of funds from savers to…

Q: What do you think were the main causes of the Financial Crisis?

A: In a financial crisis, asset expenses see a steep decline in price, companies and customers are…

Q: What challenges faced by the financial services commission of Jamaica

A: Jamaican financial services commission faced a huge financial crisis.The main cause of the Jamaican…

Q: Explain what is meant by Creation of NPAs as a challenge faced by financial system

A: A non-performing asset widely known as NPAs is a loan or an advance for which the principal amount…

Q: What do you think should be done to prevent another global financial crisis?

A: Financial crisis are results from the systemic failures, regulatory absence, pandemic, unanticipated…

Q: Identify several different types of financial institutions, and describe the main services these…

A: Answer:- Different types of the financial institution and main services of this institution offers…

Q: What happened the financial crisis of 2008 and 2009 ? what can  do to ensure it does not happen in…

A: The crisis of 2008 was the next biggest economic downturn after the Great Depression of 1929. The…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: