Banking and Monetary Policy_Butkiewicz_Date_030410

Banking and Monetary Policy_Butkiewicz_Date_030410 -...

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Chapter 5 continued 9: hedge funds- require large municipal investments. (Riskier than mutual funds) - Leverages enable you to greatly increase yours return - Since put down a little and borrow than can gain a lot if it was a good decision, but if bad decision must sell quickly to avoid debt. 10: full service provides more advice with higher fees. Discount brokers provide less advice but lower fees. 11: underwriter helps companies issue new stocks and bonds. Their reputation enables them to sell these stocks and bonds. 12: a lot of the companies are becoming more of a financial conglomerate 13: in 2008 5 banks disappeared as investment banks 1. Bear Stearns (March) 2. Lehman Brothers (September) 3. Meryl Lynch 4. Goldman Sax 5. Morgan Stanley The Glass Stiegel act 1933- separations of commercial and investment banks, lead to the creation of federal deposit insurance, and commercial banks could not deal with stocks anymore. 14:
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This note was uploaded on 08/29/2010 for the course ECON 302 taught by Professor Abrams during the Spring '08 term at University of Delaware.

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Banking and Monetary Policy_Butkiewicz_Date_030410 -...

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