Explore BrainMass

Bank and the investor

Take a good look at the bank you use, not from the point of view of a customer but from the point of view of a potential investor. Consider both the development of 'money' from coins and notes to checks to credit cards to electronic transfer of funds, present and future interest rates, possible developments on the 'inflation front' and then consider whether 'your bank' would be worth owning shares in?

Do some research on your bank using the Internet and the CyberLibrary, and write a short paper that put it all together in making a recommendation on whether or not you think one should buy shares in your bank as part of your own investment portfolio.

Solution Preview

The bank I use is the US Bank. The increasing use of electronic transfers and mobile phone transfers has made banks indispensable for individuals, businesses, and the government. The present interest rates have been kept especially low by the Federal Reserve Rate. This low rate presents opportunities for banks to lend at favorable rates to individuals and businesses and increase their revenues and earnings. With future improvement in the US economy there will be an increase in interest rates. Further, with a growth in economic activity in ...

Solution Summary

The answer to this problem explains the criteria investors use to evaluate a bank. The references related to the answer are also included.