Under what circumstances, if any, would you be willing to participate as a lender in a peer-to-peer lending arrangement?
Answer to relevant QuestionsFinancial intermediation is not confined to bank lending but is also carried out by non-bank firms such as mutual fund companies. How do mutual funds help overcome information problems in financial markets?How has the use of credit evolved in key sectors of the economy? Plot as ratios to total credit market debt outstanding (FRED code: TCMDO) the debt of: (a) households (FRED code: HSTCMDODNS); (b) nonfinancial corporate ...The volume of commercial and industrial loans made by banks has declined over the past few decades, while the volume of real estate loans has risen. Explain why this trend occurred and how it contributed to banks’ ...If lines of credit and other off-balance sheet activities do not, by definition, appear on the bank’s balance sheet, how can they influence the level of liquidity risk to which the bank is exposed?Plot since 1990 the return on equity of small banks (banks with assets of less than $1 billion; FRED code: US1ROE) and large banks (banks with assets of greater than $15 billion; FRED code: USG15ROE).How do you explain the ...
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