Questions from Managerial Finance


Q: Why do falling home prices create an incentive for homeowners to default

Why do falling home prices create an incentive for homeowners to default on their mortgages even if they can afford to make the monthly payments?

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Q: Why does a crisis in the financial sector spill over into other

Why does a crisis in the financial sector spill over into other industries?

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Q: Who are the key customers of financial institutions? Who are net

Who are the key customers of financial institutions? Who are net suppliers, and who are net demanders of funds?

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Q: Which legal form of business organization is most common? Which form

Which legal form of business organization is most common? Which form do the largest businesses typically take and why?

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Q: Describe the role of commercial banks, investment banks, and the

Describe the role of commercial banks, investment banks, and the shadow banking system within the financial market environment.

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Q: What role do financial markets play in our economy? What are

What role do financial markets play in our economy? What are primary and secondary markets? What relationship exists between financial institutions and financial markets?

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Q: For what kinds of needs do you think a firm would issue

For what kinds of needs do you think a firm would issue securities in the money market versus the capital market?

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Q: What is a private placement versus a public offering?

What is a private placement versus a public offering?

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Q: What is the money market? What is the Eurocurrency market?

What is the money market? What is the Eurocurrency market?

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Q: What is the capital market? What are broker markets? What

What is the capital market? What are broker markets? What are dealer markets? How do they differ?

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