Financial Markets – In what sense are you a saver and/or borrower
Financial Markets Questions
Q1. Write a brief reflection (1-2 paragraphs) on your relationship to financial markets. Address the following: (Note that the main point is to reflect on your own relationship to financial markets and to use the class material from this week.)
- In what sense are you a saver and/or borrower?
- Do you use an intermediary (as a saver or borrower) or not?
- What function does the intermediary have? (if you use one)
- Optional: Do you use a specific trading platform you want to share? (Note that a trading platform is not considered a “financial intermediary.” Why not?)
About writings in DB:
- I have set it up so that you will share a writing space with a group of 8 students (including yourself). (Hopefully, I set it up correctly.)
- Share whatever you are comfortable sharing and want to talk about (get feedback on or just reflect on). You don’t need to share things about your personal financial situation that you are not comfortable sharing. You can also come up with hypothetical scenarios of where you picture you will be in the future.
Q2.If you were to buy a used car, how would you go about it? Would you go through Carmax or some other intermediary, or would you try to connect directly to someone who is selling their own used car? How could going through an intermediary be helpful? If you don’t feel you need one, why not? (Think Asymmetric Information: The seller probably knows more about the car than you do.)
Q3. Various government agencies regulate and oversee what banks do. There are many regulations on what banks are allowed to do (ex: limits on what assets banks can hold, how much capital they need to hold, what it takes to start your own bank etc.).
Paragraph 1: Describe ONE such regulation. (Many are described in the video (PPs) on Regulations) Find one regulation that looks interesting to you and describe it briefly.
Paragraph 2: Explain how this regulation can reduce Asymmetric Information or the consequences of AI. (The point here is: WHY do we have regulations? How does the particular regulation you have described help?)
Having Trouble Meeting Your Deadline?
Get your assignment on Financial Markets – In what sense are you a saver and/or borrower completed on time. avoid delay and – ORDER NOW
