lending institutions to take on the desired level of risk the bank deemed appropriate and take any
subsequent losses that resulted from risky mortgages.
Interest Rates and the Fed
Following the dot com bubble interest rates dropped and the demand for mort
Beginning roughly in 2007, the recent financial crisis has proven to be the worst financial
disaster since the great depression. The collapse occurred following the burst of the housing bubble
that began developing around 2001. Although initi
mortgages and led to the eventual decline in housing prices. A decrease in home values by itself is
not enough to cause a financial crisis, however when the mortgages that underlie securities become
questionable the effects can be widespread. In an attemp
In this case, TC fell by $100. I started with a $100 under my mattress and no currency outside of the
banking system. Total deposits increased by $500. So, putting my money into the bank increased
the money supply by $400. Notice - the change in reserves
contributed to the problem, but it is important to understand how each contributed to the problem
and to identify the reasons for the financial disaster.
One element that contributed significantly to the financial crisis was the rise of the shadow
In order to accommodate the demand for mortgages lenders began to offer an array of
complex mortgages with unclear terms such as interest only, no down payment and negativeamortization mortgages[Tre10]. Interest only loans enabled buyers to pay only the i
We will require at least 4 computers to create this piece of software. The personnel will have
general knowledge about the topic. We will require a computer lab for most of the project. There
might be some support software to verify and encrypt pin number
The money multiplier ( m) can be defined 1 / m, where m = reserve ratio. For those of you who
know math: Deposits initially increase by ID, then (1-m) ID, then (1-m)^2 ID,+ .+ (out to
infinity) (where ID = the initial deposit). Using some math tricks (we
= 500 -100
My $100 initial deposit into the banking system created $400 in loans!
What is the Change in the Money Supply?
Money Supply is the amount of money in circulation defined as both CURRENCY in circulation held
outside the banking system + To
4.4 Technical Process (Section 4 of the SPMP)
4.4.1 Methods, Tools, and Techniques (4.1 of the SPMP)
We will be programming our system out in Java. This project will be very customer driven. There
would be lots of meeting between the coders and the custom
TD = TL + TR
Equations 1 and 2 are very important to the analysis of the banking system.
A simple example of the banking system:
With all the above stuff on the banking system in mind, let us look at how bank accounting works.
Suppose that I deposit $
From my initial deposit of $100, let us look at the effects on the banking system:
4.3 Management Objectives and Priorities (3.1 of the SPMP)
Everyone will be working on everything to keep collaboration high. It will keep everyone in the loop
for the entirety of the project. It will also be easy to see whos doing how much of what. Repor
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Introduction to Biostatistics
August 23, 2011
Q.: Can everyone make it
to at least one day?
Rosner is helpful, but $.
Recommended, not mand
Math4310/Biol6317 Final Review
December 5, 2011
1. The symbol means is a subset of, and means is an element of.
2. The sample space, , is the space of all possible outcomes of an experiment.
3. An event, say A , is a subset of .
4. The union
Problem Set 11, due Thursday Dec 3
Problem 1. Refer to the data from Problem 2 in Set 10. Re-use your computations for the tables
to perform Fishers test against having an unequal mortality rate in the two groups
(two-sided). Compare the p-v