Answer the following macroeconomic questions

Using the collapse of the subprime mortgage market in the U.S., describe the components of good management and how regulation can contribute to prudent lending or encourage excessive risk taking. (What forms of discrimination are to be encouraged.) The collapse of subprime mortgage crisis has put the U.S. economy at worst however, various lessons have been learnt. One of the lessons learnt by the institutions and industry is related to good management. Most of the investments made in the U.S. mortgage industry were made without considering the possible results in future and were purely based on market speculations. It is important for management to understand the various factors like risk management, risk diversification, market supply demand etc before making important investments. One