Nabila Dehlavi 11/11/10 Weekly Assignment # 6b
Question: 1 Diversification Benefits. How does the diversification of a portfolio change its expected returns and expected risks? Is this in principle any different for internationally diversified
Chapter 1 F320
Role of Financial Markets and Institutions
Want to move money from Surplus Units to Deficit Units.
Types of markets
1. Primary vs. Secondary
Primary The issuer/company gets the money
First time IPO going public
Chapter 4 Part A
Functions of the Fed
Fiscal (tax and spending) vs Monetary Policy (money interest rates)
ORGANIZATION OF THE FED
Federal Reserve District Banks
1913 Federal Reserve Act Passed - 12 districts NY most important (p 187)
Commercial banks that
a. In what way is Carson a surplus unit?
b. In what way is Carson a deficit unit?
Carson Company Flow of Funds
In what way is Carson a surplus unit?
Carson Company made purchases of U.S. Treasuries, which are government debt, thus Carson Company
is acting as a surplus unit to the U.S. Treasury.
In what way is Carson a def
By: Maxwell Kelley & Jan
Why U.S. Stocks?
U.S. Stocks are an ownership
share in U.S.-based
corporations. U.S. Stocks act
as the core asset class because
history demonstrates that they
offer significant returns over
7 Oct 2015
Financing in the Bond Market
4. Transaction.Defineeachofthefollowingtypesofforeignexchangetransactions. a. Spot:participantsofspotmarketarecommercialbanks,brokers,and
i. immediatetransaction ii. recordedby2ndbusinessday b. Outr
Chapter # 3 Questions: 4. The Impossible Trinity. Explain what the term impossible trinity means and why it is true. Exchange rate stability: Countries with floating rate regimes can maintain monetary independence and financial integration but must sacrif
Chapter 1 QUESTIONS: 1. Globalization and the MNE. The term globalization has become very widely used in recent years. How would you define it? Globalization as producing where it is most cost-effective, selling where it is most profitable, and sourcing c
Chapter 7 Questions: 1. Term Forecasting. What are the major differences between short-term and long-term forecasts for the following: A fixed exchange rate & A floating exchange rate? Long-run forecasts may be motivated by a multinational firm's desire t
Briefly summarize the article and the issue of the impact of Islamic law on debt markets in the Middle East. Islamic Bond Decree Cripples Sukuk, Imperils Projects is a very wise way to explain the situation in this article. This article is basically expla
Inflation is a rise in the general level of prices of goods and services in an economy over a period. Summarize the article about how some countries want to create a new global currency. This article talks about China, Russia, and some other countries wan
1. Please inquire about any terms or concepts mentioned in the article that you are unfamiliar with or don't understand. Exploitation: To take advantage of (a person, situation, etc), esp unethically or unjustly for one's own ends Evasion: an act or insta
Delegation: Authorizing subordinates to make certain decisions Rugged: Tempestuous; stormy Terrain: An area of land; ground Compare and contrast the Icelandic financial crisis and collapse to those in Southeast Asia, Russia and Argentina in the late 90s a
Chapter 10: Operating Exposure
Operating exposure (Economic Exposure, Competitive exposure, or Strategic exposure): Change in present value of firm due to effects on its operations caused by unexpected exchange rate changes - Change in sales, price, or co
Question: 3. The Central Problem. What is the central problem in consolidating the financial statement of a foreign subsidiary? The central problem arises from the fact that exchange rates change from one time period to another, combined with t
9 Sept 2015
Roles of Financial Markets and Institutions
In what way is Carson a surplus unit?
In what way is Carson a deficit uni