The Financial System and the Economy Coursework Example | Topics and Well Written Essays - 250 words

The Financial form and the Economy - Coursework ExampleVarious organizations that had invested in the organizations located in United States even suffered a extensive loss as these organizations were on the verge of bankruptcy (The Economist, 2013). This depicts that organizations located in one region are highly dependent on organizations in other regions and thus there is a need to nurse organizations in one nation to protect organizations in other nations. In order to avert and overturn future similar financial crises the regulators in the United States need to keep a close travel along on the organizations in the United States and stop them from indulging in unhealthy practices due to which they may formula losses and experience bankruptcy. This in turn ordain not only protect organizations in US, this lead even protect organizations and economies throughout the world.2. The five determinants that investors take into account while making any enthronement related decisio ns includes the expected return which is the return on investment that investors assume or predict they will receive through an investment. The return is the determinant which is the amount of money that a particular security has realise and evens the alterations in the price of the security in comparison to the valuate at which the security was initially traded. The third determinant is the capital yield which is the amount of money an investor is able to earn within a proper(postnominal) extremity of time and its comparison with the value of the investment that was experienced at the beginning of the specific catch (Croushore, 2007). The fourth determinant is the capital yield which is a term used to refer to the elevation in the dollar based value of a particular investment over a specific period of time. The last factors is the capital gains yield which is the capital gains that a particular investment has offered in comparison with the value of the investment at the start of the period in which the capital gains is measured. The most important