Commercial banks, insurance companies, investment banks, and pension funds are all examples of financial intermediaries. For each of these, give an example of a source of their funds and an example of their use of funds.
Answer to relevant QuestionsLife insurance companies tend to invest in long-term assets such as loans to manufacturing firms to build factories or to real estate developers to build shopping malls and skyscrapers. Automobile insurers tend to invest in ...If higher leverage is associated with greater risk, explain why the process of deleveraging (reducing leverage) can be destabilizing.What would you expect to happen to investment and growth in the economy if the U.S. government decided to abolish the Securities and Exchange Commission?Compute the present value of a $100 investment made 6months, 5 years, and 10years from now at 4 percent interest.Approximately how long would it take for an investment of $100 to reach $800 if you earned 5 percent? What if the interest rate were 10 percent? How long would it take an investment of $200 to reach $800 at an interest ...
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