Define and explain the agency problem in terms of differences in ability to diversify risk...

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Finance

Define and explain the agency problem in terms of differences in ability to diversify risk by finance and human capital.s Why does it arise? Is the problem related to ethics? What are the mechanisms available to ameliorate the agency problem?

What is the trillion dollar coin proposal being discussed in the United States (USA)? Why is the USA able to consider such a proposal? What are the pros & cons of this proposal in the context of the statement in the podcast Invention of Money hat 'money is a belief'.

Your friend just got a credit card with a spending limit of $5000. The annual rate on outstanding balance every month is 24%. What is effective annual rate on outstanding balance?

You notice that your friend thinks that he has a greater capacity to spend now and pay later. Sumultaneously he also thinks that the interest rate is too high. What financial counselling you will provide to your friend.

Define & explain Annual Percentage Rate (APR) & the Effective Annual Rate (EAR). What is the relationship between APR & EAR? Explain with examples.

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