What Effect Did the 2007 Housing Crisis Have on the Money

question 265

Essay

What effect did the 2007 housing crisis have on the money multiplier?

Understand the life cycle of entrepreneurial firms and associated management challenges.

Identify key personal traits and characteristics of successful entrepreneurs.

Recognize different sources of finance for businesses, including debt and equity options.

Understand the attitudes and personal interests that motivate entrepreneurs.

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Definitions:

Financial Intermediary

An institution that pools investors’ money and invests it on their behalf giving the investors shares of itself. Mutual funds are the primary example.

Indirect Method

A way of calculating cash flows from operations by starting with net income and adjusting for changes in non-cash accounts.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital, advising on mergers and acquisitions, and providing other financial services.

Certificate of Deposit

A savings certificate with a fixed maturity date, specified fixed interest rate, and can be issued in any denomination aside from minimum investment requirements.