Questions from Financial Markets


Q: Explain why the loan loss provisions of most banks could increase in

Explain why the loan loss provisions of most banks could increase in a particular period.

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Q: Explain why many savings institutions experience financial problems at the same time

Explain why many savings institutions experience financial problems at the same time.

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Q: An insurance company purchased bonds issued by Hartnett Company two years ago

An insurance company purchased bonds issued by Hartnett Company two years ago. Today, Hartnett Company has begun to issue junk bonds and is using the funds to repurchase most of its existing stock. Wh...

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Q: Explain how the Financial Institutions Reform, Recovery, and Enforcement Act

Explain how the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) reduced the perceived risk of savings institutions.

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Q: Who are the owners of credit unions? Explain the tax status

Who are the owners of credit unions? Explain the tax status of credit unions and the reason for that status. Why are CUs typically smaller than commercial banks or savings institutions?

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Q: Who regulates CUs? What are the regulators’ powers? Where do

Who regulates CUs? What are the regulators’ powers? Where do credit unions obtain deposit insurance?

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Q: What are the alternative forms of ownership of a savings institution?

What are the alternative forms of ownership of a savings institution?

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Q: How does high economic growth affect an SI?

How does high economic growth affect an SI?

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Q: What criteria do regulators use when examining a savings institution?

What criteria do regulators use when examining a savings institution?

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Q: How did the creation of money market deposit accounts influence the savings

How did the creation of money market deposit accounts influence the savings institution’s overall cost of funds?

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