What are the different types of financial intermediaries

Assignment Help Financial Management

Reference no: EM131012159

Assume that you recently graduated with a degree in finance and have just reported to work as an investment adviser at the firm of Balik and Kiefer Inc. Your first assignment is to explain the roles financial intermediaries play in the U.S. banking system to Michelle Delatorre, a professional tennis player who has just come to the United States from Chile. Delatorre is a highly ranked tennis player who expects to invest substantial amounts of money through Balik and Kiefer. She is also extremely bright, and, therefore, she would like to understand in general terms what will happen to her money. Your boss has developed the following questions, which you must answer to help explain the nature of financial intermediaries and the U.S. banking system to Ms. Delatorre. a) What is a financial intermediary? What is the financial intermediation process? b) What roles do financial intermediaries fulfill? c) What are the different types of financial intermediaries? Give some characteristics that differentiate the various types of intermediaries. d) Describe the banking system found in the United States. e) What role does the Federal Reserve play in the U.S. banking system?

Reference no: EM131012159

Questions Cloud

Riskier divisions get a greater share of capital : If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? Explain your reasoning.

Which ecological system does the following describe : Which ecological system does the following describe? The teacher of a child with diabetes communicates with the parents about the child's needs

How much will you receive when the bonds mature : You purchase 6,500 bonds with a par value of $1,000 for $981 each. The bonds have a coupon rate of 10.4 percent paid semiannually, and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mat..

Show the primary and foreign keys for each entity : Create an ERD that represents the entities, attributes, the relationships between entities, and the cardinality and optionality of each relationship that are described by this business rule.

What are the different types of financial intermediaries : What are the different types of financial intermediaries? Give some characteristics that differentiate the various types of intermediaries. Describe the banking system found in the United States. What role does the Federal Reserve play in the U.S. ba..

Through its open market operations : Through its open market operations, the Federal Reserve recently increased deposits at financial institutions by $80 billion. If the reserve requirement for all deposits is 8 percent, what is the maximum effect that the Fed’s actions can have on tota..

What is the percentage reserve requirement : Deposits in all financial institutions equal $2 trillion. The total reserves held by these institutions are $200 billion, $100 billion of which is in excess of reserve requirements. What is the percentage reserve requirement?

Define the first step of research : Write a one to two (1-2) page essay in which you: Identify the first step in the student's guide to research. Define the first step of research in your own words. Identify the major assumptions and bias of the drug industry that underlie drug resear..

Find the lines that are tangent and normal to the curve : Find the lines that are tangent and normal to the curve at given point for the following below: (x2)(y2) = 36 (1,-6) and 4.) y = 7 sin (πx-y), (1,0).

User Account

All Pages