The relationship of this to individual and aggregate saving

Assignment Help Financial Management

Reference no: EM131055133

What are the economic functions that financial intermediaries and markets perform that benefit society? In your answer, discuss the relationships of financial intermediaries and financial markets to the savings investment process within an economy and to each other. In addition, provide in your discussion an analysis of the differences in preferences among economic agents as an explanation for the wide variety of primary and secondary securities found in financial markets and the reasons for federal and state regulation of depository institutions and other financial intermediaries. In this regard, consider what role asset-backed securities, securitization and the secondary markets for these instruments play in the efficiency of the financial intermediation process. For example, the mortgage-backed securities secondary markets’ development and the funds flows to finance home ownership. In this discussion consider the role of interest rates in determining the demand for current and future consumption and the relationship of this to individual and aggregate saving.

Reference no: EM131055133

Questions Cloud

The percentage change in price of bond : Both bond A and bond B have 7.6 percent coupons and are priced at par value. Bond A has 8 years to maturity, while bond B has 16 years to maturity. a. If interest rates suddenly rise by 2 percent, what is the percentage change in price of bond A and ..

Compute the slope of the capital market line : Data on weekly stock prices for Microsoft Corporation, Exxon Mobil Corporation and the S&P 500 Index were used to compute the following historical volatility and expected return. compute the slope of the Capital Market Line (CML) when the risk-free r..

What is the inflation or deflation rate : The Consumer Price Index in Period 1 is 107.5. It is 103.8 in Period 2. What is the inflation or deflation rate? State answer as a percentage rounded to one decimal place.

What would be gained by not having to support virtual memory : Can you think of any situations where supporting virtual memory would be a bad idea, and what would be gained by not having to support virtual memory?

The relationship of this to individual and aggregate saving : What are the economic functions that financial intermediaries and markets perform that benefit society? In your answer, discuss the relationships of financial intermediaries and financial markets to the savings investment process within an economy an..

Means for economic development : Who was the first administrator-statesman to attempt planning as a means for economic development?

Relevance to explaining overall corporate dividend behavior : Are dividends relevant in determining share values? Identify one factor that indicates they are, and one that indicates they are not. Give your opinion on this question and why you hold it. Select one of the following theories and provide an argument..

Evaluate the level of sox regulations : Evaluate the level of SOX regulations that applies to for-profit and not-for-profit health care organizations, indicating whether or not mandating SOX requirements for non-profits might reduce fraud and increase corporate governance

How you will attain product knowledge about the item : Select an organisation with which you are familiar t-provide the context for this project. You have been asked t-purchase a new laptop computer. Provide the following information relating t-the purchase-explain how you will attain product knowledge a..

User Account

All Pages