Dr. P.V. Viswanath

pviswanath@pace.edu

Problem assignments from: Jonathan Berk and Peter DeMarzo, Corporate Finance: The Core, Pearson Prentice-Hall.

• Financial Markets and Institutions
• Chapter 1
• Chapter 2
• Chapter 3
• Chapter 4
• Chapter 5
• Chapter 6
• Chapter 7
• Chapter 8
• Chapter 9
• Chapter 10
• Chapter 14
• Chapter 15
• Chapter 16

Financial Markets and Institutions

As explained in the slides, financial functions can be broadly divided into six categories:

• To transfer economic resources across time, borders and among industries
• To provide ways of managing risk
• To provide ways of clearing and settling payments to facilitate trade
• To provide a mechanism for the pooling of resources and for the subdividing of ownership in various enterprises
• To provide price information to help coordinate decentralized decision making in various sectors of the economy
• To provide ways of dealing with the incentive problems created when one party to a transaction has information that the other party does not or when one party acts as an agent for another

Choose a specific financial intermediary (e.g. Bank of America or Visa or FICO (formerly Fair Isaac Corporation)) and write two paragraphs explaining what financial function it performs and how.

Chapter 1 Assignment

Problems: 1, 8

Chapter 2 Assignment

Problems: 4, 5, 13, 14, 18, 21

Chapter 3 Assignment

Problems: 7, 8, 9, 11, 14, 17, 18, and 20

Chapter 4 Assignment

Problems 7, 8, 11, 12, 13, 17, 20, 23, 25, 27, 32, 37, 38, 39

Chapter 5 Assignment

Problems: 3, 7, 11, 14, 18, 20, 25, 27, and 33

Chapter 6 Assignment

Problems: 1, 3, 8, 11, 14, 16 and 19

Chapter 7 Assignment

Problems: 6, 10, 11

Chapter 8: Assignment

Problems: 9, 10, 11, 18, 19, 20, 21, 25, 27

Chapter 9 Assignment

Problems: 5, 7, 12, 15, 18, 22, 23

Chapter 10 Assignment

Problems: 2, 5, 6, 8, 12, 16, 19, 23

Chapter 14 Assignment

Problems: 2, 3, 7, 10, 16

Chapter 15 Assignment

Problems: 8, 11, 12, 14, 15

Chapter 16 Assignment

Problems: 4, 5, 8, 11