How is credit union different from standard commercial bank

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Reference no: EM133630008

Assignment

1. Business Structures

A. List the advantages and disadvantages of each type of business structure below:

a. Sole proprietorship
b. Partnerships
c. Corporations
d. Limited Liability Corporation (LLC)

B. My mother owned a small retail store in Newport, Rhode Island for nearly 20 years. In her store, she sold mostly paper goods such as greeting cards and stationery, as well as other related gifts. She also printed wedding and party invitations. Which type of business structure from the list above do you think she chose for her business? Why?

2. Financial Institutions

A. How is a credit union different from a standard commercial bank?

B. What's a pension fund and how is it typically administered by a commercial bank?

C. What are mutual funds?

D. Explain what an Exchange Traded Fund (ETF) is.

E. How are hedge funds different from mutual funds?

3. Stock Market

A. Explain how the New York Stock Exchange (NYSE) works

B. What is NASDAQ?

4. Financial Markets

A. Explain the Over-the-Counter (OTC) market. Who regulates this market?

B. Explain the difference between the primary market and the secondary market. If you were to purchase stock in Apple, would you be purchasing it from the primary or secondary market?

C. What are the benefits of making trades in Dark Pools (i.e. why might a company transact in a Dark Pool rather than in the open market)?

D. Explain the Spot Market versus the Futures Market. How do participants in the Futures Market use this market as a hedging strategy? These are very important terms for you to understand. There are plenty of examples on the web if you want to see how these markets work in a seemingly real-life scenario.

5. Market Regulators

A. What are the primary roles of the Securities and Exchange Commission (SEC)?
B. What is FINRA?

6. Monetary Policy

A. What is the Federal Reserve (the "Fed")?

B. How can the Fed control the supply of money in the US economy?

C. What is the role of the United States Treasury?

Reference no: EM133630008

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