Read the article below and answer the questions below: link: http://www.nytimes.com/2015/07/13/business/rising-economic-insecurity-tied-to-decades-long-trend-in-employment-practices.html 1)What does the advent of newer types of employment structures mean for the work force and for the country? 2)In particular, how will this effect the middle class? 3)What will these changes mean for traditional income?

Problem 1:

Consider two countries with the following characteristics. Country A has no restrictions on bank branching and banks in Country A are permitted to offer investment and insurance products along with traditional banking services. In Country B, there are strict limits on branch banking and on the geographical spread of a banks business. In addition, banks in Country B are not permitted to offer investment or insurance services.

a.In which country do you think the banking system is more concentrated?

b.In which country do you think the banking system is more competitive?

c.In which country do you think, everything else being equal, banking products are cheaper?

Explain each of your choices.

Problem 2:

Suppose you have a defined-contribution pension plan. As you go through your working life, in what order would you choose to have the following portfolio

allocations: (a) 100% bonds and money-market instruments, (b) 100% stocks, (c) 50% bonds and 50% stocks?