Description
From An Economic Analysis of Financial Structure and Economic Analysis of Financial Regulation, how does an economist look at banking?
The purpose of this assignment is to explain the economic view of banking. In your career, you'll obviously be asked to explain the financial part. While I'm partial to my discipline, I suspect you'll have to develop an overall understanding of the economy. Yet, in my opinion, it is the economic theory (thus, the analysis) that underlies the financial theory.
Explanation & Answer
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Running Head: ECONOMISTS AND BANKING
Economist’s View of Banking
Student’s Name
Institution
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ECONOMISTS AND BANKING
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Economist’s View of Banking
The financial structure is also the capital structure of a company. The financial structure
looks at how a company finances its operation through debt and equity (Belanger, 2015). Debt is
the money the company borrows while equity is the money the company gains by selling its shares.
The federal and state government tries to regulate the financial system by setting standards,
requirements, restrictions, and guidelines. Some of the reasons why the financial system needs to
be regulated are; to improve market confidence, increase financial stability, and protect customers
from incurring losses. An economist is an individual who is well versed with the economy. This
individual always concentrat...