D076 Module 2

A large corporation is looking to merge with another large corporation. Which financial institution can help them do this? - Investment bank A specialist - provides liquidity and lowers the cost of trading stocks between sellers and buyers About a year ago, the short-term Treasury bill had 1.54% interest and the long-term Treasury note had 2.54% interest. This week, the 1-year Treasury bill has an interest rate of 3.13%, while the 10-year Treasury note has an interest rate of 2.28%. What does this information indicate about the future economy? - It may indicate an economic downturn. Banks and credit unions - Receive deposits and extend loans to individuals and businesses capital market - a type of financial market used for long-term assets that are held for greater than a year capital market - is for long-term borrowing/ lending Central Bank - Ensure that a nation's economy remains healthy by controlling the amount of money circulating in the economy Coincident indicators - are collected and analyzed as economic shifts happen and include GDP and personal income Corporate Bonds - A debt instrument that is issued by a corporation in order to raise capital. In what way are coincident indicators useful? - They are analyzed during economic shifts to provide information about the current state of the economy.