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q explain the causes of the us savings and loans crisis of the early 1980sanswer on the one hand permitting sampl to make a lot riskier loans
q explain the issues involved with the fed acting as a lender of last resort llr answer on the one hand llr make possible the fed to avoid
qexplain why the fdic is following a too-big-to-fail policy of fully protecting all depositors at the largest banksanswer it is a tricky question the
q it is in the interest of each depositor to withdraw her money from a bank if all other depositors are doing the same even when the banks assets are
q bank failure may not be limited to banks that have mismanaged their assets explain whyanswer a sound bank countenanced with the wholesale loss of
q explain why a london eurobank has a competitive advantage over a bank in new york in attracting dollar depositsanswer it is able to pay
qwhat do you expect would be the effects of 911 on the size of the eurocurrency marketsanswer will increase because of fear that foreign deposits in
q describe the role of offshore banking and of offshore currency eurocurrencies tradinganswer both have mushroomed because of increased
q who are the main actors in the international capital marketanswer1 commercial banks2 corporations3non-bank financial
q why is it useful to make a distinction between debt and equity instruments answer debt instruments such as bank deposits and bonds are
q explain tobins idea of dont put all your eggs in one basketanswer the idea of diversification advanced with tobin in his attitude towards
q how can international trade in assets make both countries better offanswer by permitting them to reduce the riskiness of the return on
qwhat are the three types of gains from international transactions between the residents of different countriesanswer1 gains due to
q what are the three types of transactions between the residents of different countriesanswer1 trades of services and goods for goods
q using the gg - ll framework analyze the effect of libya subsidizing the pakistani nuclear programsanswer this will move the gg curve upward
qusing the gg - ll framework analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a countrys exportsanswer
q show the effects of the reunification of eastern and western germany in 1990 on both germany and its neighbouring european countries using
q discuss the problems that the emu will face in the coming yearsanswer europe isnt an optimum currency area so asymmetric economic
q given that labor remains relatively immobile within europe the european unions success in liberalizing its capital flows may have worked perversely
qexplain why the european unions current combination of rapid capital migration with limited labor migration may actually raise the cost of adjusting
q how much trade do currency unions createanswer the major result is that currency unions promote trade one study originate that on average
q how mobile is europes labor forceanswer differences in culture and language discourage labour movements between european countries
q is europe an optimum currency areaanswer yes the areas economy is strongly integrated with its own most eu members export as of 10 to 20
qexplain why it may make sense for the united states japan and europe to allow their mutual exchange rate to floatanswer even though these regions
q explain why the oil price shocks after 1973 made countries unwilling to revive the bretton woods system of fixed exchange ratesanswer using