In 2008, as a financial crisis began to unfold in theUnited States, the FDIC raised the limit on insuredlosses to bank depositors from $100,000 per account to$250,000 per account. How would this help stabilizethe financial system?

Q: What are the basic risk faced by financial intermediaries? Discuss each throughly

A: The banks, and other financial intermediaries are considered to be very important for the economic…

Q: Why was the Federal Reserve System set up withtwelve regional Federal Reserve banks rather than…

A: The federal reserve system of the Fed is the central banking system of the United States, comprised…

Q: What are the transaction costs problems facing financialorganizations? Explain how financial…

A: Transaction costs refer to the gap between the receiver's actual price and the price paid by another…

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: Do you think that the Fed should have bailed out large financial institutions during the credit…

A: The global financial crisis of 2008 was the largest crisis the world has weathered since the great…

Q: Explain how financial intermediaries reduce a. Adverse selection; and b. Moral hazard.

A: Adverse selection- Adverse selection usually refers to a condition in which sellers have information…

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: 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: 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: In what way might consumer protection regulationsnegatively affect a financial intermediary’s…

A: According to the consumer protection regulations and acts in financial services state that all…

Q: а. Describe the trade-off between funding risk and funding cost of the banks?

A: The funding risk is that when a bank may be unable to pay its loans when they become due is known as…

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 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: 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: Suppose that after a few mergers and acquisitions, onlyone bank holds 70% of all deposits in the…

A: Yes, this would be considered as a big fail because deposits in one bank would lead to monopoly of a…

Q: The Minsky Model of a Financial Crisis .   Economist Hyman Minsky believed “…the financial system in…

A: A market economy is an economic system where price is determined based on the forces of supply and…

Q: Why do equity holders care more about ROE thanabout ROA?

A: The ROE i.e. Return on Equity and the ROA i.e. Return on assets measures the excess return or…

Q: discuss four factors that can cause financial intermediation to fail.

A: The procedure of transferring money from economic actors with excess funds to those who want to use…

Q: What are the two basic causes of financial crises inemerging market economies?

A: When the developing nation or economy engages more and more in global market it is termed as…

Q: What can emerging market countries do to strengthenprudential regulation and supervision of their…

A: The market of a growing country that gets further active with foreign markets as it expands is an…

Q: ow the E-banking services help the rural bank in having low Return on Equity and Return on Assets…

A: Banks are always looking for ways to increase their profits. Rural banking services are clearly more…

Q: Choose the words which complete the following statement: "Large global banks must have higher…

A: Capital Adequacy Ratio is the ratio of capital of a bank with respect to its risk weighted assets…

Q: Would you recommend the adoption of a system ofdeposit insurance, like the FDIC in the United…

A: No, i would not recommend the adoption of a system of deposit insurance, like the FDIC in the United…

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: 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: e) What happens when the bank issues N loans with N0 and each investor acquires a share of 1/N in…

A: The term loan alludes to a sort of credit vehicle where an amount of cash is loaned to one more…

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: Discuss the Basic Puzzle in Financial Structure around the Globe.   What is Lemon Problem? How the…

A: The basic puzzle in the financial structure around the Globe is the adverse selection in the…

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: During The 2007-2008 financial crisis, Sould government purchase the devalued paper, so that…

A: Devaluation is the reduction in official value of the home currency in terms of other currencies.

Q: What are the legislation and regulatory changes thathave driven the changes in the services of the…

A: Maintaining financial sustainability and the security of customers are the core priorities of…

Q: 3. When people invested in banks was there any protection their money would be there to withdraw?…

A: Withdrawal of deposits means removing the existing deposits from the bank account.

Q: en it is said that commercial banks are financial intermediaries, what is meant by this? What is…

A: A financial arbitrator is a business that acts as an intermediary between two parties in a financial…

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: Explain any four instruments that the central bank can use to regulate the financial system?

A: Central bank is said to be a financial institution that has the authority to control money supply of…

Q: Are near money's highly liquid financial assets or many financial asset?

A: Near money is a financial economics term describing non-cash assets that are highly liquid, such as…

Q: Why is a capital market needed when there is a banking system in the financial market? Explain?

A: Capital market provides the platform for the exchange of stocks, debentures and the securities. The…

Q: How do we restore confidence in the financial and banking industries and our political systems?

A: Introduction: The Industrial Revolution was one of the most significant events in human history,…

Q: Should banks that have become “too big to fail” (meaning their collapsewould significantly damage…

A: Disruption of credit and banking relationships being engendered by bank failure might lead to…

Q: It is a fact that the federal government (1) encouraged the development of the savings andloan…

A: In order to relieve the financial crisis and panic in an economy, the banking system was…

Q: Suppose that you have $300,000 in deposits at a bank.After careful consideration, the FDIC decides…

A: It is given that the deposit is $300,000 in the bank and the FDCI decides that the bank is…

Q: The cities' low income families have sure access to financial services due to the many commercial…

A: We know that financial systems is the very important for eny economy in growth and development of…