Money, Banking, and Financial Markets

Consider whether you would buy a used car from a private individual or from a used car dealership. What are the pros and cons of each and how does that relate to the material discussed in chapter 11 of Cecchetti and Schoenholtz? What role does the used car dealer play in the market for used cars? Now, relate your used car discussion to what could happen in financial markets for securities. 9 What do Cecchetti and Schoenholtz say about the solutions for this type of problem (see, in particular, pages 276-281)?

-intro
When considering buying a new vehicle for one’s self or family, our understanding of buying cars comes down to the source. Used car dealerships or New car dealerships have a parallel goal: to sell motorized vehicles to the consumer.
-thesis

-Pros and cons to used and new cars

-What role does the used car dealer play in the market for used cars

-relate your used car discussion to what could happen in financial markets for securities

-What do Cecchetti and Schoenholtz say about the solutions for this type of problem

-analysis

-Conclusion

Be 1,500-1,525 words (not including citation summary, name, title) and posted into Submissions (Must be in Word format) Double-spaced using normal margins (1”) and 12 pt. Late submissions are penalized (one letter grade for each day late).
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