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How merchants accepted gold receipts as a means of payment

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Economics Assignment Paragarphs

Write 3 paragraphs answering the following questions:

1. How does each of the following relate to the financial crisis of 2007-2008: declines in real estate values, sub-prime mortgage loans, and mortgage-backed securities, and AIG.

2. Explain how merchants accepted gold receipts as a means of payment even though the receipts were issued by goldsmiths, not the government. What risk did goldsmiths introduce into the payments system by issuing loans in the form of gold receipts?

Defend your views by citing information from the Web and/or your own experiences

3. The current Federal Budget, downloadable from the White House Website (https://www.whitehouse.gov/omb/budget/Overview), is huge. Examine the budgets of any two agencies-choose something that interests you. For most agencies, you will see actual spending for this year and estimated spending for the next fiscal year. Identify at least three line items that were substantially modified.

Knowing the current state of the economy, what effect, if any, do you think fiscal policy had on the changes to these line item spending amounts?

Defend your views by citing information from the Web and/or your own experiences.

The lenght of total work is going to be about one page and half, so each paragraph is half page.

Reference no: EM131307693

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