Questions from Financial Markets

Q: Your assignment is to identify the units that will be less adversely

Your assignment is to identify the units that will be less adversely affected by the recession. You believe that the units’ different characteristics will cause some of them to be affected to a more s...

Q: Currently, each unit employs economists who develop forecasts for interest rates

Currently, each unit employs economists who develop forecasts for interest rates and other economic conditions. When assessing potential economic effects on each unit, what are the disadvantages of th...

Q: Using the information available to you, forecast the direction of U

Using the information available to you, forecast the direction of U.S. interest rates.

Q: Using the information available to you, forecast the direction of Canadian

Using the information available to you, forecast the direction of Canadian interest rates.

Q: Assume that day-to-day exchange rate movements are dictated

Assume that day-to-day exchange rate movements are dictated primarily by the flow of funds between countries, especially international bond and money market transactions. How will exchange rates be af...

Q: Using your answer to question 1 only, explain how prices of

Using your answer to question 1 only, explain how prices of U.S. money market securities, bonds, and mortgages will be affected.

Q: Some stock analysts have just predicted that the prices of most stocks

Some stock analysts have just predicted that the prices of most stocks will fall because interest rates are expected to increase, which would cause investors to use higher required rates of return whe...

Q: Using the information provided, determine the probability distribution of ROA for

Using the information provided, determine the probability distribution of ROA for next year by completing the following table: IN T E R E S T R AT E S C E N A R IO (P O S SIBL E T- BIL L R AT E ) F O...

Q: Will the bank’s ROA next year be higher or lower if market

Will the bank’s ROA next year be higher or lower if market interest rates are higher? (Use the T-bill rate as a proxy for market interest rates.) Why?

Q: Other than possible changes in the economy that may affect credit risk

Other than possible changes in the economy that may affect credit risk, what key factor will determine whether this strategy is beneficial beyond one year?