Was Tooooooooooo

In: Business and Management

Submitted By woshi423de
Words 98841
Pages 396
Chapter One
Why Are Financial Intermediaries Special?

Chapter Outline


Financial Intermediaries’ Specialness

Information Costs

• Liquidity and Price Risk • Other Special Services

Other Aspects of Specialness

The Transmission of Monetary Policy

Credit Allocation

Intergenerational Wealth Transfers or Time Intermediation

Payment Services

Denomination Intermediation

Specialness and Regulation

Safety and Soundness Regulation

Monetary Policy Regulation

Credit Allocation Regulation

Consumer Protection Regulation

Investor Protection Regulation

Entry Regulation

The Changing Dynamics of Specialness

• Trends in the United States • Future Trends • Global Issues


Solutions for End-of-Chapter Questions and Problems: Chapter One

1. Identify and briefly explain the five risks common to financial institutions.

Default or credit risk of assets, interest rate risk caused by maturity mismatches between assets and liabilities, liability withdrawal or liquidity risk, underwriting risk, and operating cost risks.

2. Explain how economic transactions between household savers of funds and corporate users of funds would occur in a world without financial intermediaries (FIs).

In a world without FIs the users of corporate funds in the economy would have to approach directly the household savers of funds in order to satisfy their borrowing needs. This process would be extremely costly because of the up-front information costs faced by potential lenders. Cost inefficiencies would arise with the identification of potential borrowers, the pooling of small savings into loans of sufficient size to finance corporate activities, and the assessment of risk and investment opportunities. Moreover,…...

Similar Documents

Who Was Mr W.H.

...Who was Mr. W.H.?. If we assume that the Sonnets are autobiographical, and that all, or nearly all, are addressed to two persons — a young man beloved of the poet, and the "dark lady," with whom they were both entangled — can these persons be identified? The majority of the critics who accept the personal theory assume that the "Mr. W. H." of the dedication was this young man, rather than the collector or editor of the poems. The only theories concerning the young man (whether "Mr. W. H." or not) that are worthy of serious consideration are that he was William Herbert, Earl of Pembroke, or that he was Henry Wriothesley, Earl of Southampton. As early as 1819 Mr. B. H. Bright suggested that Herbert was the man, and this theory has steadily gained favour with biographers and critics. The editor of the "Temple" edition, who accepts the Southampton theory, writing a few years ago, believed that the Herbert theory was "in the ascendant." He added: "Many a former ally of Southampton has rallied round the banner unfurled by Herbert's redoubtable champion, Mr. Thomas Tyler." But more recently (in 1897) Sidney Lee, who had been on the side of Herbert, has now (in his article on Shakespeare in the Dictionary of National Biography, and in his Life of Shakespeare) gone over to the Southampton party; and Mrs. Stopes and one or two other recent writers have also joined that faction. William Herbert was born April 8th, 1580; and in the spring of 1598 he came to reside in London. He......

Words: 1943 - Pages: 8

Dos Was the Bullet, Anonymous Was the Shooter,

...DoS was the bullet, Anonymous was the shooter, MIT (Massachusetts Institute of Technology) was the victim. The Massachusetts Institute of Technology experienced a denial of service attack that rendered access to the Internet from campus impossible for three hours between 7 p.m. and 9:50 p.m. on Sunday, January 13th. The attack stemmed from the suicide of Internet activist, Aaaron Swartz and his radical punishment for his attempt at cyber information liberation. Aaron Swartz is most commonly known as the co-founder of Reddit and early versions of a widely used Internet tool known as RSS (Rich Site Summary). Swartz was also responsible for establishing the group “Demand Progress” which works towards policy changes in areas of civil liberties, rights and governmental reform. A rebellious yet mild natured organization that reached the U.S. Congress and was taken into consideration during the antipiracy legislation attempted last year. The “crime” Swartz was accused of was data theft in 2011, which could have resulted in 35 years in prison and up to 1 million dollars in fines. Swartz is accused of freely downloading 4 million documents from the subscription based research database known as JSTOR, and MIT’s database. Swartz was an avid reader. In fact, he stated that he would rather hear and understand others through their text as he finds the reading to be the most intimate way to get to know someone. He believed that the literary works that were publically accessible......

Words: 292 - Pages: 2

The Was Who Was Almost a Man

...The Man Who Was Almost a Man President Abraham Lincoln signed the Proclamation Emancipation. This document gave slaves their freedom. Sharecropping was also called tenant farming. Blacks viewed this as the only opportunity to become self-sufficient. Knowing that slaves had nowhere to go and all they knew was farming or domestic work; through this system, the landowner still exercised a great degree of power, illustrated by the terms of a contract. Some plantation owners took advantage of majority of the black population, because they could not read, write or count. The plantation owners needed them to keep maintaining the fields and crops. The owners would over charge them for equipment, tools, and even rent if they lived on the land. As the most common farming arrangement, former slaves did not receive payment until the crops were harvested and turned into the landowner. In return, they would be paid, but not equally. They were typically given a portion of the crops instead of money. Many times they were told or cohered into signing a contract with the plantation owners saying they must pay back any advances received, cost of tools, and rent. Richard Wright’s short story “A Man Who Was Almost a Man” from the book of Eight Men clearly illustrate the continuous enslavement by means of sharecropping. A young boy named Dave decides the time has come for him to be a “Man”. Therefore, he makes an adult decision to purchase a gun. After purchasing a revolver he makes a series......

Words: 968 - Pages: 4

The Rose That Was

...Moss Eng. 113-A Ms. Jennings Tupac Shakur, the Rose That Was “The Rose That Grew from Concrete,” a poem by the late Tupac Shakur, is a poem that parallels Tupac’s life from early childhood until his death and beyond. The concrete representing the struggles and hardships that were a part of Tupac’s earlier days. The rose represents Tupac and his determination to make something of himself against all odds. Tupac Shakur, born Lesane Parrish Crooks on June 16, 1971, spent the majority of his youth in New York City where he was born. In Tupac’s poem the concrete symbolizes his early childhood and the struggles that were a part of growing up. Tupac’s father was absent for most of his life, according to the (urbandictionary.com). Tupac did not meet his biological father, Billy (William) Garland, until after he was shot five times on November 30, 1994, in New York City. Tupac would eventually incorporate the “thug life” persona in his life which would lead Tupac on a downward spiral of misfortunes. Mikal Gilmore, in Rolling Stones article characterizes Tupac as “perhaps the most despised man in America.” Gilmore goes on to describe the late rapper’s music as being merciless and condemned by some of Americas most powerful people (Glimore102-104). Tupac would eventually end up in jail for sexual assault which would not be his last brush with the law. Between Tupac’s vision of what the concrete symbolizes and what was instilled in him from a mother and step father that were......

Words: 1256 - Pages: 6

The Way It Was

...provided some guidelines are followed. Introduction Every company throughout the world has from time to time completed an internal analysis of itself. Kraft Foods is no different. To remain profitable in this economy, Kraft cannot remain stagnate. This report will accomplish an internal view of Kraft Foods’ strengths and weaknesses. After analyzing these strengths and weaknesses, Kraft can use the strength of innovation and the weakness of supply and turn them both into good opportunities. Strengths Innovation: One of Kraft Foods’ greatest newfound strength is innovation. However, this was not always the case. In 2008, Kraft ranked next to last in its peer group in new product successes. (Goudreau, 2013) For the rest of 2008 and 2009, 17 of 19 new products introduced into the market were considered failures. There is even a quote from an outside company consultant who was brought in to report on Kraft’s innovation process who said that “Kraft is where good ideas go to die.” (Goudreau, 2013) However, in 2010 Kraft brought in some new senior level management that drastically changed Kraft’s innovation process. Instead of waiting for new ideas to develop naturally, Kraft decided to focus its innovation efforts on only a few ideas. The result of this is that Kraft developed MiO drink mixes, Oscar Mayer Deli Meats, and Velveeta Skillet packaged meals. Each of these news brands has become a $100 million platform. (Goudreau, 2013) Due to the recent success that......

Words: 1668 - Pages: 7

Was Geht

...Main gibt es keine Angebote an die Beschäftigten. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3 Wochenberichte Wochenbericht Nr.1 Woche vom: 16.01.2012 bis zum 20.01.2012 Als ich zum ersten Mal in der Fachhochschule Frankfurt am Main ankam, habe ich mich zuerst meiner Betreuerin Frau Fischer-Gerstemeier vorgestellt. Sie hat mir erzählt, was wir in der ersten Woche machen und womit wir uns beschäftigen werden. Anschließend haben wir einen Rundgang im Korridor der FH-FFM gemacht. Ich fühlte mich etwas schüchtern und verschlossen, da es mein erster Arbeitstag war. Sie hat mich den Kollegen und Kolleginnen vorgestellt und ich durfte mich auch selbst vorstellen. Es herrschte eine Harmonie unter den Kollegen, was meine Laune förderte. Darauffolgend sind wir eine Etage runter zum Studienbüro gegangen, wo ich weitere Kollegen und Kolleginnen getroffen habe und mich vorstellte. Frau Körber, die Leiterin des Studienbüros, hat mir meine Aufgabe erklärt und mir die dafür benötigte Materialien gezeigt. Ich sollte in einen Brief wichtige Informationsblätter z.B über die Krankenkasse, für die, die an der Fachhochschule angenommen worden waren, fertigstellen und anschließend in eine Kiste hineinlegen. Nach 3 Stunden sprich gegen 12:00 Uhr hatte ich dann meine Pause.......

Words: 3610 - Pages: 15

The Year Was

...The year was 1981, and the first discovered cases of PCP, Pneumocystis Cabrini pneumonia was discovered in five young males who did not fit the norm for being diagnosed with this disease. In 1983, the isolation of a T lymph tropic retrovirus was found. In January 1983, the CDC reported a new disease which could be sexually transmitted both homosexually and heterosexual, passed from mother to infant, through blood and blood products. A note was made that the disease could also be passed from a negative host, who carried the disease asymptomatically. On February 7th, the world takes notice of the African American blacks and their relationship with the HIV/AIDS epidemic. In 2006, blacks composed approximately 12% of the United States population over the age of 13. Out of that reported number it was estimated that 46% of them are living with HIV/AIDS. 63% of those cases were from between male to male cases, with 83% new cases being from high risk heterosexual black females. The numbers from the CDC report it is an estimated 12.3 per 10,000 blacks that are currently affected yearly. The hardest hit population by the HIV/AIDS virus in the United States has been the African Americans. Unlike some disease that affects certain races based on race or ethnicity, the blacks are targets because of their social and economic status. 25% of all blacks which live in the United States live in poverty. Based on that fact alone sociologists suggest that because of their social status it......

Words: 611 - Pages: 3

Ede Wa

...Ede wa The present study was designed to find out what happens to the pattern of language us e in a multilingual setting like a larger Yoruba speech community. F or this purpose, a questionnaire was designed and distributed to fifty Yoruba-English bilinguals w ithin Ondo township, one of the Yoruba speech communities. The selected respondents have qualificati ons equivalent to the first University degree, and they are mainly civil servants w ithin the town. They make use of both English and Yoruba languages everyday. The ratio of male to female respondents was put at 3:2, and this i s due to the fact that there are more male graduate civil servants than female gra duate civil servants in the particular area in which this study was conducted. Most of the questions in the questionnaire wer e designed to find out from the respondents the kind of languages spoken or used at diffe rent periods, occasions and the various functions the languages were meant to perform vis-à-vis the factors motivating the chosen codes at a particular period. The analysis of information gathered from the questionnaire was undertaken by means of a simple statistical method. In doing this, the investigator ensure d that the questionnaire was properly filled out by the respondents. An attempt was also made to get recoded spontaneous conversations of Yoruba – English bilinguals. The information was transcribed using simple orthographic conventions. After transcription, the......

Words: 288 - Pages: 2

She Was There

...much better. In 2003, the discovery of mad cow disease in Alberta halted the trade of Canadian beef to the Unites States and 33 other countries. That resulted in 400 cows being slaughtered. Mad cow disease is a transmissible spongiform encephalopathy or TSE, that attacks the central nervous system of a cattle. This can also happen in sheep and deer. There is no treatment or vaccine for this disease. This cause is associated with a protein called prion which is naturally present in people and animals and becomes infectious when it acquires an abnormal form in the brain tissue. The most probable hypothesis is that the disease started in the 1970’s following a genetic mutation that occurred within a single cow. Another guess is that BSE was transmitted among sheep afflicted with scrapie. BSE is hear resistant, so even when the cow meat is cooked it is still affected with the disease. Now it has been forbidden in Canada to feed animals with mammalian meat or even bone. Canada also monitors its imports of products with a high risk of BSE. Not only that, Canada is trying their best to monitor how the livestock is raised and what chemicals are used on the fresh produce. Another disease you should be aware of is, brooder pneumonia that’s when chickens and turkeys breath in meld from wet litters. This affects your lungs and may cause a lot of coughing and fast breathing. Genetically modified organisms are created when scientists transfer a gene from one organism to another in......

Words: 1354 - Pages: 6

It Was Not About Race. Was It?

...CASE: IT WASN’T ABOUT RACE. OR WAS IT? 1.- Identify two different concepts that have been discussed in readings and lectures that you see playing out in this case. * Stereotype: A.- Definition: We can define this concept as “A perceptual and cognitive process in which specific behavioral traits are ascribed to individuals on the basis of their group membership”. (Cox, 1993) We can also define it as a rigid, exaggerated belief associated with a mental category, that can be more or less rational and that is a consequence from the complex environment and the lack of information that the one who consider it shows. In other words, it comes up to simplify the information and the environment. It is important to know that a stereotype result from differences in levels of contact of individuals with members of “outgroups”. In this way, the lower the contact the larger the tendency to evaluate them along fewer dimensions. It is also important to know that a stereotype does not have to be necessarily bad; traits associated with the group can be positive or negative. B.- Give specific examples in the case of where the concept plays out. The stereotype suggested here is the one of the “black criminal”. Unfortunately it is usually associated black people with criminals, or at least there is a thought about that there is a higher probability that a black to be a criminal than a white to be so. We can see how in the case Hope thought that Dillon was a criminal because he entered......

Words: 828 - Pages: 4


...separate when dealing with education is beneficial. Writing Assignment 4 The separation of church and state, is the concept to keep religions out of government. It was made to keep the government neutral and so no national religion would ever be established. Over the years is has been a very heated issue. As this issue grows, America grows in population, our nation is the only country where people from many different backgrounds and cultures come together, and with them come all their different religions. History Our nation was started because people craved freedom of religion. Many Pilgrims fled from Great Britain to acquire freedom of religion, because at that time Great Britain had a national religion. It was so important to them to have religious freedom that they gave up all they had. They gave up the security of staying in Great Britain and they travelled to the unknown. Many of them died in the first year they were here. They made a sacrifice to better the lives of their children and everyone else who came after them. First Amendment of the Constitution Separation of the church and state was never specifically stated in the constitution; however, the first amendment does state that it prohibits making any laws against a religion or that hinders the exercise of free religion. The first amendment was written for the sole purpose that the Pilgrims did not want what happened in Great Britain to happen in their new country. They did not want a national religion to......

Words: 1046 - Pages: 5

There Was There Was There Was

...There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there was there was There was there......

Words: 414 - Pages: 2

Was Not

...Health and Safety The Health and Safety act began in 1974 and it was design to protect the safety health and welfare of your employees also the duties and responsibly followed both by employer and employees. This act is and enabling act which means you can add other legislation to it without having to change the act itself. This act states that when you have more than five employees working in the company you should have a written health and safety policy consisting of the aims and objectives for what will be achieved in terms of health and safety for the company. Why do you think we need health and safety in the workplace? * To prevent injuries * To keep staff safe * To make sure customers are safe * If the staff are injured due to no health and safety in work place you can lose staff, which means you would need to employ more part time staff. What might happen if there was no legislation to protect workers from harm? * Abuse from the manager * The owner would not care, as they wouldn’t need to pay compensation for injuries * Wouldn’t worry as they can easily get more employees. Hazards in one of the business… Primark * Clothes in the floor- to prevent it you can have your own section=stations where each staff knows that this is there station and it need to be cleaned * Spillage of drinks- to prevent this you could tell customers not to bring food in to shop for health and safety purpose. * Forgetting your pass- to prevent......

Words: 283 - Pages: 2

What Was

...revered by many in his clan. Okonkwo’s is said to “had had no patience with unsuccessful men” and Unoka was a very unsuccessful man. He died without title and in debt. To the majority of the clan of Umuofia, he “was a failure”. Okonkwo “was ashamed of him” and due to this he tried with every fibre of his being to be the exact opposite of his father, he was determined not to be a failure. Achebe then introduces irony with Okonkwo’s eldest son Noweye, who is said to be feminine, weak, and lazy. Infect he has traits like Okonkwo’s father. This situation is very ironic because the person Okonkwo tries to be in stark contrast, the man who he is said to be “ashamed” of, his son resembles the most of any of his children. It is almost as if Unoka is reincarnated in Nwoye. Nwoye however does begin to display masculine qualities, but converts to Christianity which Okonkwo sees as the ultimate act of betrayal. To some readers Noweye may not seem feminine or weak at all, we see at this point the themes of varying interpretation of masculinity and the struggle between tradition and change. In Umuofia, a father is responsible for the teaching of right and wrong to his children. In Okonkwo’s case this is self-taught because these lessons were not taught by his own father. Okonkwo had to rely on his own interpretations of what is defined as a “good man” and to him that was someone who was the exact opposite of his father. As a result of his self- taught childhood Okonkwo feels anything......

Words: 914 - Pages: 4

Civil Wa

... It is known for the war  that ended slavery. What most people don’t know is the war was not originally fought for  the abolition of slavery. The South, or the Confederate, wanted to exercise their rights as  states and split from the north. Well Abraham Lincoln thought that would be the downfall  of the United States. The Civil War was fought to between the Union and the  Confederacy on the issue of splitting up the United States. The country was divided  between two philosophies, either they thought the country could only survive and prosper  as a whole, or they believed the south had the right to split from the union.  The country was divided between two different philosophies. The North  believed if the South seceded from the North the country would crumble. While the South  believed they had the right as states to separate themselves from the Union. (Malvasi)  Abraham Lincoln was the head of the Unions thinking. He had a great sense of political  knowledge. He realized if the south did secede the Union wouldn’t stand a chance against  attack because half of the country essentially would have been gone. Lincoln originally  had no plans of abolishing slavery all his focus was on keeping the country together in  one strong unit. (Malvasi) The South on the other hand felt they had been mistreated by  the Union and were being taken advantage of. Soon the idea of secession came around  and South Carolina was the first to make the threat. They were quickly foll......

Words: 4176 - Pages: 17