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If you “buy straw hats in winter” or buy “when there is blood in the street,” what kind of investor are you?
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- If you had a large sum of money to invest, would you make the investments yourself and then make your own trades, or would you hire an investment broker or money manager?If you are an investor, it is better to invest your money in ________How is your borrowing power affected when you are considered a "low risk"? There is a good chance that you will receive better loan terms and low interest rates. You might not qualify for a loan to buy a home, car, etc. You will have to pay higher interest rates. None of the above.
- Suppose a friend of yours asks you about Islamic banking and he does not believe in Islamic banking as he is on the view that Islamic banks use KIBOR rate while taking profit which is the interest based benchmark of conventional banks moreover Islamic Banks also receive extra money from their customers in case where they make delay in payment. Required: How will you satisfy your friend by answering these two questions?5. Suppose you need home financing. Which type of bank will you prefer? Islamic or conventional? Will you recommend Islamic banking to your friends and family? If yes, why? If no, why not?How is your borrowing power affected when you are considered a "high risk"? There is a good chance that you will receive better loan terms and low interest rates. O You might not qualify for a loan to buy a home, car, etc. O You will pay lower interest rates. O None of the above.
- An article in the Wall Street Journal quoted an anonymous billionaire investor as asking: "Has there ever been a carry trade that hasn't ended badly?" What is a carry trade? Why might it end badly?What are some common types of mortgage fraud? How much money is lost from mortgage fraud? How do mortgage fraud affect the home buying process? is mortgage fraud a problem in America? What happens if you get a mortgage fraud conviction? How can I protect myself from mortgage fraud?What are some common types of mortgage fraud? How much money is lost from mortgage fraud? How do mortgage fraud affect the home buying process? is mortgage fraud a problem in America? What happens if you get a mortgage fraud conviction? How can I protect myself from mortgage fraud?Within the context of the real estate bubble burst of around 2008, consider the follpwing statements and answer the questions Managers at some banks and mortgage companies have argued that providing subprime mortgages was based on their desire to give poor people a chance to participate in the American dream of home ownership. What is your opinion of this explanation in terms of ethics and social responsibility? What ethical principles or approaches support your opinion?
- Harry, a friend of yours, is taking a course in economics, and has become confused by some of the terminology because of the way people commonly use the same words. The economics professor says investment occurs when companies buy equipment and build factories. Yet Harry has always heard people talk about investing as a method of saving when they put money in the bank or purchase securities. He's confused by these dissimilar uses of the word, and has asked you to explain. After asking for your help, Harry happily states that there's one thing he does understand perfectly about what the econ prof says, and that is "savings equals investment." Since investing in stocks and bonds is also saving money, it's obvious that savings equals investment! Write a brief explanation to help Harry out.What is a scheme that guarantees returns to investors but uses funds from new investors to pay returns to old investors called? Ponzi scheme Fake charity scheme Pyramid selling scheme Pump-and-dump schemeOne example of financial intermediation is the selling of mortgages by banks to a third party. If you borrow money from the Bank of America to buy a house, the bank immediately sells your mortgage to a third party like Fannie Mae. This transaction gives Bank of America the cash to make another mortgage. Fannie then holds your loan along with millions of others they have bought, and they use the loans as assets to serve as collateral, so they can borrow money in the financial markets to buy more loans from Bank of America and other lenders. What is the impact of all this activity on the cost and availability of mortgages? What if any pitfalls do you see in the process? On balance, is it good or bad for society? Why?