Dis 8.1
What is the “best” lesson/concept/theory you have learned from this class and why do you think it is important or impactful in both your learning process and/or profession? Explain your response.
Weekly Sum 8.1
Each week you will write and submit a brief summary of the important concepts learned during the week. The summary will include a summary of the instructor’s weekly lecture including any videos included in the lecture.
Case Study 8.1
Completion requirementsTo do: Make a submission
Due: Sunday, End of Module by 11:55 p.m. EST
- What are agency costs? How do Financial Institutions (FI’s) solve the information and related agency costs experienced when household savers invest directly in securities issued by corporations?
- What are five general areas of FI specialness that are caused by providing various services to sectors of the economy?
- Explain how a decrease in the discount rate affects credit availability and the money supply.
- Describe how expansionary activities conducted by the Federal Reserve impact credit availability, the money supply, interest rates, and security prices. Do the same for contractionary activities.
- Why have home equity loans become popular? What are securitized mortgage assets?
- How do finance companies make money? What risks does this process entail?
- How do these risks differ for a finance company versus a commercial bank?
