Greece

The country chosen for the final project is Greece it is located in the southern part of Europe. It has an extensive coastline and shares its borders with Albania, the Republic of Macedonia, Bulgaria, and Turkey. The reason behind this choice is the rich history and culture the nation has with significant influences in art, philosophy, language, politics and sports. The nation was the originator for the Olympic Games that is estimated to have started in 776 BC and ended in 393 BC before it was reinstated in 1896, after more than one millennium (Finley, 2012). Currently, it is one of the world's most visited countries, ranked amongst the top 20 tourist destinations. According to the Greek Ministry of Tourism, the country received over ten million tourists in the year 2015 (Turner, 2015). This has allowed the country’s foreign exchange generation to increase significantly from US$17 billion in 2014 to US$ 29 billion (Turner, 2015). Compared to ancient Greece, modern Greece has had several economic stagnations. The nation joined the then called “European Community” which later was renamed to the “European Union (E.U.)” in 1981. During the same period, the country suffered economic inertia; however, the E.U. come to the country’s aid leading to the nations noteworthy economic, growth of the 1990s. The increased heavy investments, trade, aid from the E.U. and promotion of entrepreneurship drove this growth (Petrakis, 2014). Nonetheless, the country is mostly recognized for its remarkable geological and archeological sites. With eighteen UNESCO World Heritage sites as well as long coastline, many islands such as Rhodes and Mykonos the nation is a rich geographically defined region (Katsoni, & Stratigea, 2016). The country is rich in information economically, geographically, socially and politically.

Geographical Map of Greece

(World Atlas, 2017)

Statistics of the Nation (Central Intelligence Agency, 2017)

Geographic Elements

The table above shows the balance sheet of Big-But-Simple Bank (BBSB). This bank has taken $60 billion of shareholders' equity and leveraged itto?

Use figure 2.4 to answer questions 6-8

6. What was the estimated bank losses, on average, for every million dollars in outstanding mortgage balances during 1996Q1? Enter your answer below. Example: If your answer is $2,500 then enter 2500 (no dollar sign, commas, or decimals).

Answer:

Question text

7. What was the estimated bank losses, on average, for every million dollars in outstanding mortgage balances during 2001Q1? Enter your answer below. Example: If your answer is $2,500 then enter 2500 (no dollar sign, commas, or decimals).

Answer:

8. Which of the following statement best describes the data in figure 2.4:

Select one:

a. With the exception of a few quarters losses due to defaults were negligible.

b. With the exception of a few quarters losses due to defaults were substantial.

c. Mortgage delinquencies and defaults were relatively high.

d. There was significant volatility in the mortgage industry.

MBS, CDOs, and CDSs are all examples of:

Select one:

a. bonds

b. stocks

c. derivatives

d. commercial paper

A bond can be described as a(n):

Select one:

a. stock

b. bank loan

c. credit restriction

d. fixed-income security

The figure above shows the interest rates (sometimes called yields) for two types of bonds: US 10-year Treasury bond and a risky corporate bond. The gap (i.e., vertical distance) between the US 10-year Treasury bond (red) and risky corporate bond (blue) lines is called:

Select one:

a. risk premium

b. yield gap

c. premium spread

d. default zone

An investor has $50,000 in cash to put a $5,000 down payment on 10 different homes valued at $50,000 each and will finance the rest of the investment. Soon after buying the homes she sold all 10 homes for $60,000 each and  earned a profit of $100,000 - an astounding 100% return on investment. This scenario is an example of:

Select one:

a. risk-return

b. interest rate spread

c. financial liquidity

d. leverage