Principal types of financial institutions

Assignment Help Financial Management

Reference no: EM131070775

Briefly discuss the purpose and role that each the three principal types of financial institutions (depositary, contractual, and investment) play in the U.S. economy. How do each of these institutions intersect with the various types of markets, i.e., capital, money, spot (cash), derivatives, Forex and Interbank, primary, and/or secondary (inclusive of OTC)? Considering your analysis of institutions and markets, what strengths and weaknesses exist in our current economy that inhibit optimal performance in these areas? Propose at least one measure or solution to improve or eliminate the weaknesses you’ve identified.

Reference no: EM131070775

Questions Cloud

What are the expiration date profits to position for stock : You buy a straddle, which means you purchase a put and a call with the same strike price. The put price is $1.20 and the call price is $3.50. Assume the strike price is $30. a. What are the expiration date profits to this position for stock prices of..

Decision tree problem : Decision Tree Problem. Expando, Inc. is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering three alternatives: build small plant, build large pla..

What are the portfolio weights anb what is its beta : A stock has a beta of 1.2 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of 0.8, wha..

How much is your options investment worth : Calls Puts Strike Close Price Expiration Vol. Last Vol. Last Hendreeks 103 100 Feb 72 5.20 50 2.40 103 100 Mar 41 8.40 29 4.90 103 100 Apr 16 10.68 10 6.60 103 100 Jul 8 14.30 2 10.10 Suppose you buy 25 February 100 call option contracts. Hendreeks s..

Principal types of financial institutions : Briefly discuss the purpose and role that each the three principal types of financial institutions (depositary, contractual, and investment) play in the U.S. economy. How do each of these institutions intersect with the various types of markets,

Diversified mutual fund portfolio : You recently inherited $50,000 from your grandma. You and your husband agree that investing the inheritance for the next 20 years is the reasonable move. After thorough consideration, you have narrowed your investment options to three choices. Choice..

Portfolio equally invested in risk-free asset and two stocks : You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.6, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio?

Depreciation on the machine this year : In April 2015, Emma acquired a machine for $60,000 for use in her business. The machine is classified as 7-year property. Emma does not expense the asset under Sec. 179. Emma's depreciation on the machine this year is?

Mutual fund-the market index and the risk-free rate : Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. Year Fund Market Risk-Free 2008 –15.13 % –25.5 % 2 % 2009 25.1 19.6 4 20..

User Account

All Pages