The stock market experienced a significant decline in 2008 and early 2009, with the S&P 500 losing over half of its value. This was a result of the housing market collapse and subsequent credit crisis, which had widespread impacts on the financial sector. explain that with a graph please.
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The stock market experienced a significant decline in 2008 and early 2009, with the S&P 500 losing over half of its value. This was a result of the housing market collapse and subsequent credit crisis, which had widespread impacts on the financial sector. explain that with a graph please.
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- Explain how financial crises lead to a credit crunch and a recession.What will happen in the bond market if the government imposes a limit on the amount of daily transactions? Which characteristic of an asset would be affected? How might it affect the interest rates. Explain with a graph. I want to see the answer to this question and steps. ThanksMatch each of the following players in the financial system with the financial product(s) they are most associated with. Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. Players Financial product Stocks a. Commercial banks 2 Bonds ? Loans Stocks b. Savers Bonds 2 Loans Stocks c. Investment banks Bonds 2 Loans
- What will happen in the bond market if the government imposes a limit on the amount of daily transactions? Which characteristic of an asset would be affected? How might it affect the interest rates. Explain with a graph.What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give example.What were the implications of the crisis on the financial industry? (Savings and Loans crisis in the 80s and 90s)
- Your bank has the following balance sheet. Assets: Rate-sensitive $200 million Fixed-rate 100 million Liabilities: Rate-sensitive $150 million Fixed-rate 150 million (a) If the interest rates in the economy go down by 3%, will profits increase or decrease? Show your work and calculate the numerical value of the change of profits (b) Briefly explain why profits increase/decrease according to your answer in part (a) (c) Is there anything that you could do to keep your bank from being so vulnerable to interest rate movements? Give the answer of all.What is a financial bubble in the context of asset markets? A. A situation where asset prices are stable and reflect intrinsic value B. A sudden and unsustainable increase in asset prices followed by a crash C. A government policy to regulate asset markets D. A situation where asset prices are controlled by a single entityWhat is the 2008 financial crisis. What are its causes and effects?
- Explain in your own words how interest rate brings financial market into equilibrium. Explain with graph Instructions: Solve within 30 minutesA financial institution may want to compare its performance with those of others. This can be done by comparing with the __________ index.questions: List and discuss the various reasons that contributed to the financial crisis that occurred in 2008.