Question

PLEASE HELP I AM STUCK ON THIS AND BEHIND I WILL GIVE 50 POINTS

1. Which type of forms and other documents would you need in order to open a checking or banking account? Describe two examples.



2. What is a stock market bubble? What causes a bubble? Why does a crash generally follow a bubble?


3. What is meant when one currency rises against another currency? How might Europeans vacationing in the United States benefit when the euro is rising against the dollar?


4. What is one cost and one benefit of online banking, and one cost and one benefit of traditional banking? Which type of banking would you prefer? Why?


5. What are two differences between futures contracts and forward contracts?
Answer:

Answer 1

1) These forms can be a state ID, Social Security card, passport or birth certificate

2) A bubble is a rapid escalation of asset prices followed by a contraction, often created by a surge in asset prices that is fundamentally unwarranted. When a bubble bursts, many people lose much profit of the dealings of them, which brings the economy down into a crash.

3) When the currency in one country rivals and is worth greater than another, The Europeans have money that may be worth much more in the US, so they will get the best value for their vacation.

4) For online banking, it's fast, but it may not be reliable as their are many technical glitches in bank systems. For traditional banking, it's reliable, but it's not fast and may be out of the way. It's basically up to you to decide your preferred banking... if your impatient, go with online, but if you want to ease all your problems the methodically, slow way, go traditional, but it's up to you.

5) Futures Contracts are highly standardized whereas the terms of each Forward Contract can be privately negotiated. Futures are traded on an exchange whereas forwards are traded over-the-counter. Forward Contract Settlement can occur on a cash or delivery basis. Forward Contracts do not trade on a centralized exchange and are therefore regarded as over-the-counter (OTC) instruments.

Hope this helps!

Answer 2

1. Two examples of documents you must provide to open a bank account include a copy of your social security car or your id to show proof of identity. Another form you must have is a proof of address. You mut have them or you will be denied.

2. A stock market bubble is a when you have a period of growth n the stock prices that are followed by a decrease or a fall. Bubbles from when traders go through a self-sustaining cycle of constant growth. When this occurs, they gain momentum when more and more people enter the market.

3. When currency in one country rises and gains more worth, the Europeans money will be worth more in the United States.

4. One cost of online or mobile banking is the conveniency to be able to get on your device and look at your account status(s). A cost of online banking could be the glitches or even maintenance, it may be down for a period of time. When it comes to traditional banking a benefit it may be a bit more reliable, but also in a way may take a little longer if there are distance issues. If I am being honest, I prefer mobile/ online banking. I still go to the bank every week to double check and deposit cash tips that I made the week of. For me mobile banking is more convenient to be able to open my Credit Union app and deposit checks, check balances, transfer within my accounts, etc.

5. A forward contract conveys the obligation to buy/sell an asset at a fixed price and a fixed contract is an obligation to buy/sell a property at a fixed price. Forward contracts also are tailor-made contracts, and a future contract is a standardized contract. Forward contracts are also settled upon maturity while future contracts can be settled on a daily basis.