Question: 1. Identify and briefly explain the five risks common to financial institutions. 2. What were some of the causes of the Great Recession of 2008?

1. Identify and briefly explain the five risks common to financial institutions.

2. What were some of the causes of the Great Recession of 2008?

3. What is a subprime lender? Do they operate differently compared to other lenders?

4. Why would a manufacturing company create its own financial services company?

5.What is the adverse selection problem? How does adverse selection affect the profitable management of an insurance company?

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