Study Questions Ch.8-14

Study Questions Ch.8-14 - Fin 307 S07 L. Pierson Doti Study...

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L. Pierson Doti Study Questions Chapters 8-14 Financial Institutions Intro Chapter 8 1. Explain why financial institutions exist, from the point of view of the economy and from their own advantages over individual direct transactions. 2. 2. Explain asymmetric information problems and how they relate to financial institution management. 3. 3. Describe the following types of non-depository FIs. Give examples within each group. How does each acquire and invest funds? Who regulates each type? a. Securities Market b. Insurance c. Pension funds d. Government Credit Agencies e. Finance Companies f. Investment Companies 4. 4. Explain why a contributory pension fund is the best investment possible for most people starting their first job. 5. Explain the difference between defined benefit and defined contribution pension funds. 6. When would you need an investment bank? 7. Describe the three types of depository financial institutions. 8. Explain how Glass Steagall 1933 and Gramm-Leach-Bliley 2000 affected financial institution consolidation. Terms for Chapter 8 FI economies of scale Whole life Term life Hedge funds Portability Fannie Mae Freddie Mac Securities Market Investment banks Brokers Dealers Insurance Property casualty insurance Permanent life Pension funds Vesting Contributory Defined benefit Defined contribution Government Credit Agencies Finance Companies Mutual Funds REIT Investment Banks Depository Financial Institutions Commercial Banks, Savings Banks and Credit Unions Chapter 9 1. 1. What two activities define a bank? 2. How did the US get dual banking? 3. What was the Bank of the United States? 4.
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Study Questions Ch.8-14 - Fin 307 S07 L. Pierson Doti Study...

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