Finance

Answer 1

1a)

Recent developments are increasingly suggesting that the crisis of 2008 did not end, but simply entered a stage of remission and the financial crisis in 2011 is not so much a separate phenomenon, as a logical continuation of the previous one. And most likely, the bottom, followed by economic recovery will not yet be. In many cases, thriving economies did not suffer from major macroeconomic imbalances, and went several years with high growth of GDP, but the volatility of speculative financial capital, "noise" internal political and rumors about the ability to pay of commitments, triggered a massive outflow of these funds, which caused severe crises in the economies of affected countries, which led the International Monetary Fund (IMF) and several developed countries, had to come to the rescue of economies in crisis. This financial support has several names, for some financial assistance is called for others is a "shield", but beyond the terms used, the fact is that the IMF as a lender of last resort, conditional financial support to change that states a commitment to implement structural changes into their economies.

1b)

A swap or swap is a contract whereby two parties agree to exchange a series of amounts of money at future dates. Normally the exchange of money futures are referenced to interest rates, calling IRS (Interest Rate Swap) though more may be considered a generic swap any future exchange of goods or services (including money) referenced to any observable variable. This structure (called the IRS, that is, interest rate swaps) can be used to immunize themselves from market fluctuations or manage mutual funds. Swap agreement are set dates in which payments will be made and how they are calculated. An interest rate swap is a contract in which two counterparties (A and B) mutually agree to make financial ...