Expert answer:Global financial history 15 short answer questions
Solved by verified expert:Global financial history 15 short answer questions to be answered in 10-50 words each. The textbook is THE ASCENT OF MONEY by Niall Ferguson. Thnakshere is the link to 4 episodes.It’s four episodes https://www.youtube.com/watch?v=X1sjFHEl5GI&sns=emYou can signup for scribd free subscription in trial for 30 days and read the book for free from this link.https://www.scribd.com/audiobook/310581054/The-Ascent-of-Money-A-Financial-History-of-the-World
assignment_2b_short_answers__2_.docx
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FIN 3309: Global Financial History
Assignment 2b. Short Answers on: Development of the Risk – Return Relationship with Insurance,
Bonds, Stock-owned Companies, and Bursting Bubbles
Due Date: Monday, October 19 end of day or sooner
Maximum Score is 75 points (15 questions * 5 points per question = 75)
Submit in Canvas
Requirements:
1. Create a new document with a Cover Page titled: Assignment 2b. Development of the Risk –
Return Relationship with Insurance, Bonds, Stock-owned Companies, and Bursting Bubbles. See
the Rubric below for a detailed list of grading for the Cover Page and the Writing requirements.
2. On the following pages, cut and paste each question listed below and include the number for each
question. Below each question, provide a typed short answer to each question. Each answer is
to likely to be no more than 10 – 50 words per question and only a few words when that is
adequate for a short answer.
3. All questions are based on the text, The Ascent of Money, so no additional research is needed or
expected. What’s required is that you read the text, reflect on the text, reflect on the questions,
and provide a short answer. These questions will assist with a later assignment in the course about
the 5 Cs of Credit, which is not from the text.
4. Guidelines for Writing Assignments and the Rubric for Grading:
1. Use well-developed sentences.
2. Be more formal with business writing than every day speech, especially by vocabulary and
attention to proper use of spelling, punctuation, commas, semicolons, proper matching of
subject and verb, etc.
3. Type your short answers with spacing of 1.0 or 1.5 or double-spaced.
4. Consider using resources at the University Writing Center.
Rubric for Writing Assignments
Maximum Score
Complete Cover Sheet:
Title of Assignment; Course Name and
Number; Your Name; Date.
2%
Formatting/Organization
14%
Grammar/Spelling/Punctuation/Syntax
14%
Content
70%
Total
100%
5. Below are the 15 questions you can cut and paste into the new document.
1. While banks generally financed commerce, what did the bond market arise to finance?
2. What was the problem for the Bond Market that the Italian City States created to finance their wars?
3. What did the Scottish financial innovator John Law invent? Where did the young John Law flee to when
he was convicted of murder? What Dutch financial invention attracted the attention of John Law?
4. How did Dutch Merchants afford profitable shipping missions to the East Indies? What Dutch company
did the Amsterdam merchants and Dutch cities form to do this?
5. What did the Dutch East India Company issue to its “shareholders” in 1606? What was born when the
directors of the Dutch East India Company created a market for shareholders to buy and sell the
companies’ stocks?
6. What went “hand-in-hand” for the Dutch East India Company? What caused this company to have a
virtual monopoly on trade from the East Indies?
7. If an investor put 1,000 guilders into the Dutch East India Company at the beginning, what was the
investment worth by the 1730s? What average annual dividend did the company payback throughout its
lifetime?
8. What financial problems did France have in 1716? What solution did Law have for this problem?
9. What was the price of stock in the Mississippi Company when it was released in 1719? What word was
first coined during this stock market bubble?
10. During the Great Depression in the U.S., the worst stock exchange crash ever occurred. What was the
date? What was the percentage decline over the next 3 years, in the Dow Jones Industrial Average?
After that decline, in what year did the stock market regain that level?
11. An example of a company that has similarities to John Law’s company and Law’s association with the
first stock market bubble is the U.S. company named __________. This company wanted to
revolutionize the energy sector when it became deregulated. What is the name of the company? How
would you describe the stock bubble and its bursting?
12. If a modern society wants to organize financial security for all, then it will inevitably face a dilemma:
does everybody save for him/herself, or do some depend on charity at the moment of a calamity, or
does the government provide financial security? The text describes a major calamity that highlighted
this dilemma, i.e., private insurance companies repeatedly saying that the government had to pay for
damage, not insurance companies, by ‘proving’ that damage was not done by wind (which is insured
by insurance companies), but by flooding (which is insured by the government).
What calamity did the author describe? Where did it occur in the U.S. and when?
13. Life insurance was initially developed in Edinburgh by two ministers with the Church of Scotland
who wanted to provide financial support to the widows of many ministers. Robert Wallace and
Alexander Webster are credited with the successful development of life insurance.
Describe the strategy and why it was successful.
14. Following the successful development of insurance for the Church of Scotland, the insurance industry
grew very large. Insurance companies became the biggest investor in British companies, investing in
fully one-third of major British companies by 1950. Britain is to date also the most insured country,
where premiums paid annually are twice as high as in Germany. But it was another country that took
the British model to an even larger level after World War II. By 1990, this country was called the
super-power of welfare.
What country is it and why is was it called the super power of welfare?
15. The text describes the rise in home ownership as linked to industrialization, which diminished the
importance of land for political power. The author describes vast desires after the Great Depression
and World War II for a steady job that provided a steady income. Prior to the Great Depression in the
U.S., not many workers owned a house and mortgages were uncommon. Then, the Great Depression
brought many foreclosures and social unrest. President F. D. Roosevelt’s New Deal answered the
concerns of a huge group of unemployed Americans. By 1960, the population in the U.S. called a
‘homeowner’ by owning a home without debt or buying a home with a mortgage surged.
To what percentage did home ownership surge in the U.S.? Explain how this came about, including the
role of the federal government.
…
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