All questions must be attempted
1. Explain the role of financial intermediaries and discuss the ways in which they benefit the overall economy.
2. Explain the key functions of the Bank of England. What are the four major functions of the Federal Reserve? Discuss the ways in which the Federal Reserve use open market operations, discount lending and changing the bank reserve requirement levels to influence the economy. Explain why the 2007-08 financial crisis caused concerns about systemic risk.
3. What are the major types of assets and liabilities for commercial banks? Explain the alternatives that a commercial bank has if it needs temporary funds.
4. Explain how mortgage backed securities contributed to the recent financial crisis?
5. How does the primary function of an insurance company compare with that of a depository institution? How can you use life insurance and annuity products to create a steady stream of cash disbursements and payments so as to avoid either the payment or receipt of a single lump sum cash amount?
6. Discuss the ways in which investment banks help companies wishing to raise finance.