Questions from Financial Markets

Q: Explain how a pension fund’s governance over corporations can help to enhance

Explain how a pension fund’s governance over corporations can help to enhance the performance of the pension fund.

Q: Explain how a pension plan’s vesting schedule works and what its purpose

Explain how a pension plan’s vesting schedule works and what its purpose is.

Q: Explain how pension plans provide tax benefits.

Explain how pension plans provide tax benefits.

Q: Explain the general difference in the composition of pension portfolios managed by

Explain the general difference in the composition of pension portfolios managed by trusts versus those managed by insurance companies. Why does this difference occur?

Q: Explain the meaning of surplus units and deficit units. Provide an

Explain the meaning of surplus units and deficit units. Provide an example of each. Which types of financial institutions do you deal with? Explain whether you are acting as a surplus unit or a defici...

Q: Why might a foreign government’s policies be closely monitored by investors in

Why might a foreign government’s policies be closely monitored by investors in other countries, even if the investors plan no investments in that country? Explain how monetary policy in one country ca...

Q: Explain what is meant by interest elasticity. Would you expect federal

Explain what is meant by interest elasticity. Would you expect federal government demand for loanable funds to be more or less interest-elastic than household demand for loanable funds? Why?

Q: Distinguish between perfect and imperfect security markets. Explain why the existence

Distinguish between perfect and imperfect security markets. Explain why the existence of imperfect markets creates a need for financial intermediaries.

Q: Explain the meaning of efficient markets. Why might we expect markets

Explain the meaning of efficient markets. Why might we expect markets to be efficient most of the time? In recent years, several securities firms have been guilty of using inside information when purc...

Q: What was the purpose of the Securities Act of 1933? What

What was the purpose of the Securities Act of 1933? What was the purpose of the Securities Exchange Act of 1934? Do these laws prevent investors from making poor investment decisions? Explain.