Why do loan sharks worry less about moral hazard in connection with their borrowers than some other lenders do?

Q: Differentiate between deposit taking and non-deposit taking financial institutions with one real…

A: There are many types of financial institutions in the economy. The main two types of financial…

Q: What is full form of ERISA? Describe about it.

A: The full form of ERISA is the Employee Retirement Income Security Act which was established in the…

Q: Explain with example the differences between Islamic banking and conventional banking,

A: Despite the fact that Islamic commercial banks offer many of the same products as Western banks, the…

Q: Is Islamic banking really different?

A: Banking: These are the services provided by a bank.

Q: If you were going to get a loan to purchase a new car,which financial intermediary would you use: a…

A: ANS A credit union is a cooperative that is owned by members those who shares the profits, these…

Q: Why is it that bank deposit secrecy became a highly sensitive issue with respect to the…

A: Anti-money laundering (AML) represents an attempt that financial institutions do in order to meet…

Q: The issue centered on blockchain implementation methods and difficulties in the banking sector.

A: Definition: the important thing goal of the blockchain implementation segment is to take the models,…

Q: At which stage money laundering is easy to detect?

A: Money laundering refers to an illegal process of producing a huge amount of money that is generated…

Q: How can the adverse selection problem explain whyyou are more likely to make a loan to a family…

A: Adverse selection is a situation where the seller has the information or knowledge about the quality…

Q: Explain why dating can be considered a method tosolve the adverse selection problem.

A: Adverse Selection refers to a situation where sellers to the transaction has more knowledge compared…

Q: Can we trust financial intermediaries?

A: In most cases, financial intermediates function as middlemen in transactions involving banks or…

Q: How transactions between suppliers and users of funds take place? How would they prove that there…

A: The suppliers and user of funds demand funds as they lack the necessary capital and need large pool…

Q: Should bankers be empowered by law to inquire into the sources of their customers' deposit?

A: Every day, bankers, often referred to as retail bankers, work with customers by helping them with…

Q: what is a real life example of a commercial bank

A: Commercial banks are the financial institutions which provide people with facility of loans and…

Q: The inadequacy of money supply circulating or available in the financial system makes the trading of…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: what is the benefit of offshore banking to clients

A: An offshore bank is one that is governed by an international banking license that prevents it from…

Q: corporate banking is for A) more like individual basis B) any size of firms C)rich customers…

A: The question has been answered below.

Q: Should banks be more focused on traditional banking, or should banks be able to provide…

A: Financial institutions are the institution that provides the financial service services. It includes…

Q: Suppose consumers lose their faith in the banking system, and decide to start stuffing their money…

A: A industry may be a group or network of institutions that provide financial services. The key styles…

Q: What would happen if the us treasury department stopped issuing new securities?

A: Although rare, especially in the case of US Treasury securities, such a situation might have…

Q: Why is there a need to regulate Investment banks?

A: Investment banks are companies or corporate divisions that functions as an advisory in the financial…

Q: Possession of information by one party in a financial transaction but not by the other party is…

A: answer : asymmetric information where possession of information by one party in a financial…

Q: Briefly explain how banks can optimize their position through managing their use of derivatives?

A: The probability of loss due to a borrowers failure to make payments on any type of debt is called…

Q: what are the better ways to reduce banking sector risks?

A: Reducing the risk inherent in the banking sector can be very important for regulatory authorities as…

Q: What are the environmental and other consequences of cryptocurrency? Essay 1500 word

A: A peer-to-peer community called a blockchain video display units and organizes it, in addition to…

Q: Mention at least five principles or elements on the basis of which you can differentiate…

A: Islamic banking is described as the system of ethical banking and the practices in this system are…

Q: Is it important to have an access to different financial services? Explain your answer.

A: Financial services are economic services offered by the financial sector, which includes a variety…

Q: Which type of risk are savings institutions least susceptible to? Interest rate risk Liquidity risk…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

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: What is the effect of money laundering in the economy? Explain your answer.

A: Money laundering refers to the illegal process of making large amounts of money, usually generated…

Q: Why have banks been losing cost advantages in acquiring funds in recent years?

A: Banks have to bear an amount of cost to acquire the funds, but there are some cost advantages that…

Q: how could we focus on bank governance and culture?

A: By 'governance', It mean broadly the oversight that comes from banks' own shareholders and other…

Q: How does collateral help solve the adverse selection and moral hazard problems in debt contracts

A: Collateral:    It is an asset that a lender accepts as security for a loan. The collateral acts as…

Q: Why are the number of traditional banking systems inindustrialized and developed countries…

A: Traditional banking system focuses on the physical existence of banking with offices and providing…

Q: what if the Bank of Cheap Loans tries to charge an even lower rate?

A: A number of banks and housing finance companies reduce the interest rate for a fee on the floating…

Q: We have discussed the principal-agent problem as a form of moral hazard. Discuss the unique problems…

A: The managers in the banking industry encounter a peculiar situation of impressing both the bank…

Q: Economics A bank run in the Diamond-Dybvig banking model makes A.both early consumers and late…

A: In this model,both assets and liabilities are considered.

Q: Why do you think profit and loss sharing concept is used in Islamic banking?

A: Profit and Loss Sharing, often known as PLS or "participatory" banking, is a method of financing…

Q: If not for a great deal of corporate wrongdoing, there would probably be no FCPA. True or False?

A: FCPA (Foreign Corruption Protection Act) mainly stands for the law related to corruption. FCPA was…

Q: What is the impact of money laundering towards the economy?

A: Money laundering means a process of converting money that is earned from illegal activities into a…

Q: Is Bitcoin legal tender anywhere in the world? Explain and cite your source?

A: Concept The digital money is a peer-to-peer system. Bitcoin first appeared in 2009, introduced the…

Q: In economic terms, what does quantitative easing actually do?

A: The goal of the monetary policy of the central bank is to control the amount of money in the…

Q: Why do we call a bank a financial intermediary?

A: An individual or a firm or a party who is placed between two other parties are called Intermediary…