Explain the eight basic facts about the US financial structure. Explain how financial intermediaries allow their borrowers and savers
Week 6: Interactive activity
6.1 Learning Outcomes:
Explain the eight basic facts about the US financial structure.
Explain how financial intermediaries allow their borrowers and savers to benefit from the existence of financial markets.
Explain the problems that result from asymmetric information.
Explain the tools that can be used to reduce these problems.
Identify the three types of financial service activities with the greatest potential for conflicts of interest and explain why it is important avoid and eliminate conflicts of interest.
Define the conditions that lead to a financial crisis.
Identify the various ways in which a financial crisis can occur and their associated results.
Describe the three stages of financial crises and the relationships between them.
Explain the origin and progression of the financial crisis that began in 2007.
Explain the progression of financial crises as experienced in emerging market countries
Explain the non-financial effects of financial crises.
6.2 Action Required:
Read the Enron case in chapter 7
6.3 Test your Knowledge (Question):
Brief the major issue of this Enron case.
6.4 Instructions
Answer the question in the test your knowledge section.
Post your answer in the discussion board using the discussion link (Week6:Interactive learning Discussion)
Answer preview for Explain the eight basic facts about the US financial structure. Explain how financial intermediaries allow their borrowers and savers
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