Please Answer these questions in essay format. 

Assignment BUS 422

1.      Explain the statement, “A financial claim is someone’s asset and someone else’s liability”?

2.      Explain concept of financial intermediation. How does the possibility of financial intermediation increase the efficiency of the financial systems?

3.      Why is denomination divisibility an important intermediation service to the typical household?

4.      Why are economies of scale important to the viability and profitability of financial intermediaries?

5.      Explain the differences between the money markets and the capital markets.  Which market would General Motors use to finance a new vehicle assembly plant?  Why?

6.      What is the prime rate?  Why do some banks make loans below the prime rate?

7.      What do we mean by “off-balance-sheet” activities?  If these things are not on the balance sheet, are they important? What are some off-balance-sheet activities?

8.      What is the essential difference between the Keynesian and the monetarist view of how money affects the economy?

9.      From the article provided what are 5 stages of global financial crisis?

10.  What was the impact of global financial crisis on UAE economy? Why have UAE been affected? How have UAE overcome (4 points)?