Availability of funds to homebuyers no longer depends on local credit conditions and is no longer subject to local ban's potential monopoly powers; with mortgages passs-throughs trading in national markets, mortgages can flow worldwide to wherever demand is greatest. Banks, investment companies, insurance companies, and credit unions are known as financial intermediaries. Bank raises funds by borrowing (taking deposits) and lending that money to other borrowers together. The spread between interest rates paid to depositors and the rates charged to borrowers is the source of the banks ...

• Word Count: 317
• Approx Pages: 1
• Grade Level: Undergraduate

Disproportionate increase in the volume of world GDP and financial assets can be attributed to an increase in asset prices, liberalization and rapid development of the credit market and the like. ... Tens of billions of dollars of losses had to write off the world's largest banks, such as Union Bank of Switzerland (UBS) and Citibank. ... In 2008 went bankrupt a few investment banks and the bank Merrill Lynch was purchased by the largest commercial bank in the US – Bank of America. ... As a result out of the five largest investment banks three went broke, and one was sold to a comme...

• Word Count: 1288
• Approx Pages: 5
• Grade Level: Undergraduate