assignment 1

1. The five principles of good credit management are: risk and reward balancing, plan for tomorrow, know the odds, manage information, and assign risk management responsibility.  As a financial institution there are various products to offer. Assume your financial institution is developing a credit management policy. Using the five principles listed about, explain how your company can cover the principles for a credit card, home equity credit line, and 1st mortgage.

2. For each of the credit products listed below, identify the target market for these products, investigate your local market for these products (competitors) and develop a pricing strategy you would use as a new firm entering this market. Discuss your market penetration strategy.

– Automobile Loan (new car)

– Bankcard (gold version)

– Bankcard (secured)

– Boat/RV Loan

– 1st mortgage

– Home equity line of credit

– Personal loan (unsecured)

assignment 2
1. Describe a generic asset bubble.

2. Narrate the causes and consequences of the financial crisis that began in 2007.

3. Define central bank and explain the importance of central banking.

4. What is the structure of the Federal Reserve System and how do other central banks compare to the Fed.