Swap

was to stay with my first choice because I had a 50/50 chance of winning the car since I already knew a goat was behind one of the doors. It was truly a baffling mind game and completely counter-intuitive. Information from the video what the answer really is. You have the opportunity to win a car hidden behind three doors. Behind the three doors are two goats and the car. After you choose a door, the host opens one door revealing a goat because he already knows behind which door the car is hidden. You are faced with the choice of deciding whether to stay with your original decision or to switch your choice to the remaining closed door. Most people will decide it makes no difference to swap doors since there is a 50/50 chance of winning the car. The answer is that you should always swap because it gives you twice the chance of winning the car. How was…

On Saturday, February 6th, I traveled to the 8th Annual Tack Swap hosted by the Stark County Jr. Fair 4-H Horse Committee at the Stark County Fairgrounds. This was the first time I had ever been to this event and I was attending to assist my good friend Amy with her booth. Amy is the owner and operator of a small scale western wear store, City Limits Western, which was going to be displayed at the tack swap and her husband Dusty, our friend Adriana, and myself were all recruited to help her out.…

Summary: What happened was that people (even those with subprime mortgages) were rated AAA. AAA rating carries little risk because it assumed everyone could pay. Banks gave away loans without even checking people's files, they want interests and rating companies want money as well, so they ensure that people will pay. Few individuals including Dr. Michael Burry realized how volatile this was and decided to buy Credit Default Swaps. Credit Default Swaps are similar to insurance in case people…

Wife Swap is an American reality television program that switches two mothers from different families with different lifestyle. This time we have two mothers who live and use different rules. The first family is Carnie and her husband Rob. They have two girls and a nanny, who is Tish to take care of them and clean the house as well. Carnie and her husband meet together at night in the end of the day and do not spend much time with family. The second family is Tracy and her husband Roby. They…

requirements at a larger institution (Federal Deposit Insurance Corporation, 2012). Utilizing funded retention, the bank is able to treat credit risk. The community bank would position themselves within profits and provisions, with equity capital as a last cushion, to mitigate the expected outcome (Perez, 2014). If the bank is unprepared, the bank suffers losses. Financial problems for a bank arise from a sensitivity to interest rate risk. Movements in interest rates may cause potential…

oversight system. This act resulted in many fundamental changes to the US financial system; holding eight components that make it difficult for a repeat of the financial crisis. Some of these components are things such as overseeing wall street, regulating risky derivatives, registering of hedge funds, overseeing credit rating agencies, and regulating of mortgages (Amadeo). The Dodd-Frank act has effectively put laws into place to prevent some of the largest factors that created the financial…

failures. One instance in which the “too-big-to-fail policy” has been used goes in part with AIG Insurance Company. The problem that AIG ran into involved their business with credit default swaps. Originally, AIG mostly did business with traditional insurance products; however, after getting involved with credit default swaps the company incurred a lot more risk as well as to the institutions that bought the swaps. The swaps AIG invested in had to do with subprime mortgages. The problem that…

At the moment the financial instruments are not as tightly regulated as insurance products securities or futures. The current consensus is that the CDS market will be subject to tighter regulation but is this really a good thing necessarily? The right wing conservative general public feel that these products have caused enough harm to the global economy and should be completely banned and suspended the market from trading anymore. This is a view also shared by the European authorities as they…

If Tyson Foods supposes the price of the Euro to depreciate against the dollar, to avoid the risk of the decline, the firm can identify a European company that wants to make the same sized investment to arrange for an offsetting loan. The two companies will lend each other their respective currencies with which to make their investments thus repay each other later in which case no company is affected by the currency fluctuations. Currency swaps are agreements between two firms to exchange an…

happens there. Then I thought that I could go to a swap meet and observe what happens there. During the summer time my family attends regularly and has…