Finance: Economic Conditions, Financial System, Product Examples, and Market Risk

Running head: FINANCE
Finance
Name of the Student
Name of the University
Author Note

1FINANCE
Table of Contents
Part A: Economic conditions of US:...........................................................................................2
Part B: Overview of the Financial System:.................................................................................5
Part C: Product examples:...........................................................................................................7
Part D: Market Risk....................................................................................................................8
References:................................................................................................................................10

2FINANCE
Part A: Economic conditions of US:
This part intends to analyse economic condition of the US through
considering gross domestic product (GDP), inflation, employment between
2005 and 2018 along with housing loan approvals (Harrison et al. 2018).
Through analysing these indicators, the report can state the stage of business
cycle in which the country is operating with the help of appropriate
explanations.
GDP:
Figure 1: Annual GDP growth of US
Source (Data.worldbank.org. 2018)
According to above figure, GDP growth of US became low during
2008 to 2010 due to global financial crisis (GFC). As the GFC was started
from this country, it affected US’s economic condition adversely. After this
situation, GDP growth started to increase drastically though later it
fluctuated by small proportion. However, since 2016, GDP growth of US
has started to increase continuously.

3FINANCE
Inflation:
Figure 2: Inflation rate of US
Source: (Data.worldbank.org. 2018)
The above figure has represented inflation trend of US. According to
figure 2, inflation of US fluctuated drastically between 2007 and 2012. After
2015, this macroeconomic indicator has started to increase at a slower rate.
The average inflation during this period remains at 1.54 percent, which in
turn helps economic condition of this country to improve further.
Employment:
Figure 3: Employment in US
Source: (Data.worldbank.org. 2018)
Figure 3 has considered employment to population ratio of US
considering employees aged above 15 and others. According to this