With the biting economy and dwindling levels of income, many Microfinance clients have been affected and so MFIs are likely to experience low business and high defaults. As the CEO of the MFI in question, explain the measures you will take to tackle this challenge

Bear Stearn case: In light of the collapse of the hedge funds, how serious were Bear’s credit problems? What steps did management take or could it have taken to address the problem?

Can a financial market be complete and allow for arbitrage opportunities at the same time?

Which of the statements about subprime lending is false? Before the 2008 financial crisis, financial institutions increased the number of subprime loans they issued as home prices continued to rise. If a home owner is unable to afford the mortgage payments, the homeowner can always pay off the mortgage by selling the home. Subprime lending occurs when financial institutions issue loans to individuals who are less likely to be able to repay their loan than individuals who meet a set of standards. The risks associated with subprime lending increase as the likelihood of falling home prices increase.

Can at least six distinct policies for the safety of a financial system be designed and considered for immediate implementation?

The Niche Insurance Policy Behind a Software Company's Big Legal Payout Summary: Did you know that insurance companies will give you money back if you paid them too much? It's paid in the form of insurance dividends. Did you know celebrities and athletes can have their body parts insured, or that Troy Poamalu's hair is apparently insured by Head and Shoulders? Now, we have another insurance product that is all the rage, the judgment preservation policy. This policy aims to minimize the risks associated with financial transactions and litigation by protecting against the possibility that an award won at the trial court could be wiped out or reduced on appeal. Recently Appian was awarded a $2B judgment. By Appian taking out a judgment preservation policy, they are guaranteed at least $500M. The appeals process can be unpredictable, so having this type of policy gives transparency and allows investors to place a value on the outcome. Truly, another innovative product brought to us by the…

Would the interest rate increase be more likely to hurt or help the financial institution’s profitability?

More and more employees are choosing to invest in a company 401(k) plan versus a pension plan. What is the difference between the two?

Moral hazards and asymmetric information fueled the great recession 2007-2008, which is triggered by the collapse of the housing market. The financial turmoil of 2007-2008 could be avoided if the government intervenes and regulates the financial institutions and mortgage brokers. Do you agree or disagree with this statement? And please give a short explanation why?

An efficient financial market means transaction costs.  True or False?