Answer the following questions $($submit in a Word or PDF$,$ format$)$:

Explain in general terms how savings institutions differ from commercial banks with respect to their sources of funds and uses of funds. Discuss each source of funds for savings institutions. Identify and discuss the main uses of funds for savings institutions.

Describe the liquidity and credit risk of savings institutions, and discuss how each is managed.

Describe the main source of funds for credit unions. Why might the average cost of funds to credit unions be relatively stable even when market interest rates are volatile?

Describe the types of finance companies and their correspondent sources and uses of funds.

Explain how the finance companies differs from that of depository institutions such as commercial banks, with respect to:

Liquidity Position

Exposure to interest rate risk

Exposure to credit risk

Explain why mutual funds are attractive to small investors. How can mutual funds generate returns to their shareholders?

How do open$-$end mutual funds differ from closed$-$end funds? Explain the difference between load and no$-$load mutual funds.

Explain why diversification across different types of mutual funds is highly recommended.

Explain why hedge funds may be able to achieve higher returns for their investors than mutual funds. Explain why the risk of hedge funds may differ from mutual funds. When the market is overvalued, why might hedge funds be better able to capitalize on the excessive market optimism than mutual funds?

Describe the main functions of securities firms.

Explain the role of the SEC, the NASD, and the stock exchanges in regulating the securities industry.

Describe the underwriting and best effort functions of a securities firm.

Describe a direct placement. What is an advantage of a private placement? What is a disadvantage?

How do whole life and term insurance differ from the perspective of insurance companies? From the perspective of the policyholders?

Identify the characteristics of universal life insurance.

What are the main assets of life insurance companies? Identify the main categories. What is the main use of funds by life insurance companies?

How do insurance companies manage credit risk and liquidity risk?

What purpose do property and casualty $($PC$)$ insurance companies serve? Explain how the characteristics of PC insurance and life insurance differ.

Describe a defined$-$benefit pension plan. Describe a defined$-$contribution plan, and explain why it differs from a defined$-$benefit plan.

Describe how Pension Plans participate in financial markets.