Interest Rates and Security Pricing

Interest Rates and Security Pricing - Interest and Rates 1...

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Interest and Rates 1 Running Head: INTEREST RATES AND SECURITY PRICING Interest Rates and Security Pricing Susana Silvestri FIN-350 24-Apr-11
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Interest and Rates 2 Privacy protection has become an important public policy issue in the financial service industry. Why does this issue appear to be more important today than in the past? What are the costs and benefits of additional legislation and regulation designed to protect customer privacy? Is there evidence as to how these regulations benefit the public? Privacy Protection has become a very important public policy issue due to the Identity Theft. Financial institutions utilize the unique personalized instrument that identifies an individual, the Social Security and the Drivers License or Identification Cards are some of these instruments utilized to be able to establish services and credit for the clients. Nowadays, all the technology advances, makes it really easy for the thefts to acquire someone else identity to take advantage of their credit. These actions will make the client a victim of identity theft by compromising their personal biggest asset, their identity. Some of the legislation and regulation designed to help the protection of the customers privacy has been established by the Federal Financial Institutions Examination Council which ordered financial institutions to have more security measures when accessing customer’s online account. The security questions that are getting added to these access procedures will include answers that only the customer is aware of.
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Interest and Rates 3 If you were managing a small bank or insurance agency in your local community, what current and future trends in financial services and institutions would likely have the greatest impact on your institution? Why? What responses could you make to each trend you have listed? If I had the opportunity to be a manager of a local institution in my community, my approach will probably be to operate an insurance company were consolidation of services are offered to the client without having to look around by giving them incentives to remain and acquire as many of the services offered. Some of the services could be geared towards the actual business branch like health, dental, life, auto, and home insurance to mention the most common ones. Then by helping the elderly understand who their Medicare and the additional supplements can reduce there overall expenses. We must remember that the best advertising is by word of mouth and if one family member is satisfied, it will spread to everyone else in their household. Making a one stop for all insurance need under one company will alleviate some of the hassles of shopping for different policies. Another possible product will be the travelers insurance which is usually sold by travel agents only and the prices are extravagantly high.
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Interest and Rates 4 What is the significance of the life-cycle hypothesis for the management of financial institutions? Of an aging population? Of ongoing changes in the basic family unit and the
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Interest Rates and Security Pricing - Interest and Rates 1...

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