What are the convergence of issues that led to and caused the subprime financial crisis of 2007-2008

Q: Why do banks choose to securitise their assets? Explain how securitisation may exacerbate the…

A: Answer -      Securities :- These are a financial instrument which has non-negotiable and has…

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: What are the causes and impact of financial crisis 2007 – 08 on world economy with special reference…

A: The financial of 2007-08 started in US and rapidly stretched to European Union and later to other…

Q: What technological innovations led to the developmentof the subprime mortgage market?

A: The subprime loan market is a market that serves individuals with questionable or limited credit…

Q: What did the McKinnon and Shaw predict about the movements of interest rates once financial markets…

A: We have show that, McKinnon and Shaw predicted that interest rates would rise when it càme to…

Q: Discuss the goals of regulatory frameworks with regards to reasons governments manage regulate-es…

A: There are many reasons behind the regulatory framework of government, government intervention is…

Q: What do you think prevented the financial crisis of2007–2009 from becoming a depression?

A: The financial crisis of 2007-2008 or the Great Recession was a period of a severe economic downturn…

Q: Explain potential conflict of interest in the operational structure of systematically important…

A: In the mentioned question we have been asked what are the conflicts of interest in operational…

Q: Identify and explain the main factors that contributed to the financial crisis of 2007-2008.

A: Financial crisis refers to a situation in which investors sell their assets and withdraw their money…

Q: The following are some of the instruments involved in the collapse of the US financial markets in…

A: The following are some of the instruments involved in the collapse of the US financial markets in…

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: In light of the recent financial crisis of 2007–2009, doyou think that the firewall created by the…

A: The Glass-Steagall Act was passed on 23rd May, 1933 by the House of the Representatives. The main…

Q: Impact of covid 19 on financial services sector in SEA Question: Does this crisis present an…

A: Answer=

Q: Explain the role of financial innovation and the role of regulation in the generation of a financial…

A: A financial system consists of legal rules, firms, and markets, with the financial firms including,…

Q: Why was the Term Auction Facility more widely used by financial institutions than the discount…

A: The Term Auction Facility  is a program by Fed  to increase the amount of liquidity in the U.S.…

Q: Explain potential conflict of interest in the operational structure of systematically important…

A: i) Conflict of interest In a conflict of interest, a person or organization has numerous interests…

Q: Define and discuss the portfolio-balance effect in terms of Quantitative Easing and its impact on…

A: Portfolio-balance effect  According to the portfolio-balance hypothesis, the interest rate adjusts…

Q: Q11. Which of the following is/are linked with the financial sector of India and controlled by the…

A: The financial sector consists of businesses and institutions that provide financial services to both…

Q: Explain what is the function of the following components in a country's financial system.…

A: A system that in turn allows fund exchange between market participants including investors, lenders,…

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: Explain on how the BASEL III affected the financial institution to the country generally?

A: Basel III is a 2009 international regulatory agreement that established a set of measures aimed at…

Q: Analyse the main mechanisms of credit risk transfer developed by banks between 1970 and 2007. In…

A: Risk transfer among banks started vigorously towards the finish of the twentieth century. To be…

Q: What is/are the short-term and long-term impacts of the most recent federal reserve actions (buying…

A: Answer- Need to find- What is/are the short-term and long-term impacts of the most recent federal…

Q: 1.What role did the major contributors to the credit crisis play (Homeowners, mortgage brokers,…

A: The financial crisis in 2008-2009 happened due to  a large number of factors.

Q: he Dodd Frank Act does not address some of the issues related to the financial crisis and recession…

A: Dodd Frank Act came in July 21, 2010 to strengthen the financial system and rules governing it, so…

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: Provide a detailed analysis of the impact of informational asymmetries on financial markets and the…

A: The situation when one among the two parties tends to possess more information as compared to the…

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: Give two examples each of revenue eceipts and capital receipts in a financial pudget.

A: According to the given question Financial budget in economics is known as a budget which predicts…

Q: Summarize the government policies thatreduce the likelihoodof financial crisesin emerging…

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

Q: How did the securitisation of mortgages and the targeting of sub-prime borrowers contribute to the…

A: Mortgages to high-risk borrowers were expanded, and home prices rose, contributing to a period of…

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: 7. Which of the following factors have led to the global financial crisis of 2007- 2009? A)…

A: The global financial crisis of 2008, commonly referred to as the financial crisis, was an…

Q: Explain the following statements: “(1) individual financial institutions will generally have…

A: A macroprudential approach supervises and regulating to ensure stability for general equilibrium and…

Q: Choose the correct answer and give short explaination.

A: Financial liberalisation refers to policies aimed at reducing or eliminating regulatory oversight of…

Q: Discuss the following statements: “(1) individual financial institutions will generally have…

A: Financial institutions are central banks, all the retail banks and insurance agencies. These do have…

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: 1) What is a mortgage-backed security and what part did these play in the 2008 financial crisis? 2)…

A: Note:- Dear learner  you have posted multiple questions, as per our policy we will solve only first…

Q: If expected inflation is rising, how does it affect the bond prices and yields to maturity in the…

A: The general rise experienced in prices of goods and services over a period of time in the economy is…

Q: Describe  three steps of Dynamics of Financial Crises in Emerging Market Economies.

A:

Q: Summarize thechanges to financial regulation thatoccurred in responseto the global financialcrisis…

A: Consumers,banks and the government contributed to improper lending and borrowing of funds which in…

Q: Deliberate specifically how and through which channels the interest rate affects(negatively or…

A: Any fluctuation in interest rates has a ripple effect both positively and negatively throughout the…