Banks must effectively manage the profitability vs. safety trade-off to satisfy varying constituencies (shareholders, depositors, regulators)

Their is both a legal an illegal shadown banking system

Shadow banking has grown due to the demand for credit/lending intermediation outside the traditonal banking system, mostly since the 2008 financial crisis after banks tightened their underwriting standards

The Money Market is used to invest/borrow short term vs the Capital Market used to financing long-term needs 

Junk bonds are bonds rated with a higher rate of default risk 

Daily Survival Kit Which of these (toothpick, eraser, pencil, rubber band) are u currently using or plan to use in the future?  

There are pro’s and con’s related to the Shadown banking system.  Which of the follwing is not a pro characteristic:

Indicate below if the provisions of the 2010 Dodd-Frank Financial Overhauls Act addressed the following players/contributions  to creating the  2008 Financial Crisis? Federal Reserve interest rate policy [a1] TBTF banks systemic risk [a2] Credit rating agencies conlflcit of interest risk [a3] Credit Default Swaps [a4] Abusive lending practices [a5] Financial innovation/liberalization [a6] Principal-agent problem of mortgage lenders/brokers taking advantage of illiterate borrowers [a7]

Investment banking takes on price risk when underwriting a IPO

The clause under the Sarbanes-Oxley Act of 2002 making it unlawful for a registered public accounting firm to provide non-audit services to a client contemporaneously with providing audit services is an example of separation of functions to prevent a conflicit of interest