If investors shift funds from stocks into bank deposits (this is common during a financial crisis), this _______ the supply of loanable funds, and places _______ pressure on interest rates.   Question 9 options:   increases; upward   increases; downward   decreases; downward   decreases; upward

During times of rising​ inflation, are investments with fixed returns like a bond or bank CD attractive investments to own?

Default Pay Yourself First Interest [Choose ] [Choose ] is a strategy in which saving is prioritized and made an essential cost in a budget occurs when a borrower is unable to meet the obligation of debt repayment. is the money that a borrower owes to a lender. It can be accrued through any form of borrowing credit cards, mortgages, p- is money received through sources such as employment, investments, or business transactions. is the percentage of a loan principal that lenders charge borrowers. is money set aside for big, unexpected expenses such as job loss or large medical bills. It provides a financial buffer that shie is a plan for using income to meet financial obligations. It tracks how much income a person receives and details how that mo is the amount of money due to a loan before interest. is a financial arrangement in which money is borrowed for a purchase and paid back at a later date. It allows consumers to mo One of the most basic concepts of personal finance is being able…

Question 5.A bank has borrowing needs at timeT >0. Show that by combining an FRAtrade today with a libor loan at timeT, the bank can today lock in its interest cost forthe periodTtoT+α. Does the borrowing bank need to buy or sell the FRA to do this?What is the fixed rate that the bank locks in?

Which flow of funds indicator is considered bearish for equities? A. Higher than Average cash balances in mutual funds B. A Large increase in the number of IPOs C. An upturn inmargin debt but one that is still below the long-term average

When borrowers tend to pay back the loans to bankers earlier, the bank is facing a. Repricing risk O b. Yield curve risk O c. Basis points risk d. Embedded options risk

A bank holds a loan portfolio with the following characteristics:   Loan i Xi Annual spread between loan rate and bank’s cost of funds Annual fees Loss to bank given default Expected default frequency Correlation 1 .6 6% 3% 20% 3% -0.2 2 .4 5% 2% 30% 5%     Question 1:  what is the return and standard deviation on loan 1? Question 2: what is the return and standard deviation on loan 2?

QUESTION 4(a) Explain why the demand for loanable funds tends to increase during expansion.(b) Illustrate any FIVE (5) negative effects of inflation.

Consider the folloving scenario analysis: Rate of Return Scenario Recession Probability Stocks Bonds 194 0.20 -4 Normal economy Boom 0.40 204 268 9 0.40 a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? O No Yes O b. Calculate the expected rate of return and standard deviation for each investment. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)

Exploring Finance: The Security Market Line and Inflation Changes Security Market Line: Inflation Changes Conceptual Overview: Explore how inflation changes the security market line. The Security Market Line defines the required rate of return for a security to be worth buying or holding. The line, depicted in blue in the graph, is the sum of the risk-free return (rf in the slider) and a risk premium determined by the market-risk premium (RPM) multiplied by the security's beta coefficient for risk. Drag the slider below the graph to change the amount of the risk-free return. These changes reflect changes in inflation. Drag left or right on the graph to move the cursor to evaluate securities with different beta coefficients. In this graph, the market-risk premium is fixed at 5%. r = r_{RF} + RP_M * beta = 6\% + 5\% * 1 = 6\% + 5.00\% = 11.00\%r=r​RF​​+RP​M​​∗beta=6%+5%∗1=6%+5.00%=11.00% 1.  If the risk-free return were 4.0% and a security's beta coefficient were 2.0, what would be…