1. How does the value of the dollar affect the competitiveness of American businesses?
2. Describe an asset-price bubble.
3. Explain how and why repurchase agreements would be used.
4. Why can a financial intermediary's risk-sharing activities be described as asset transformation?
5. Identify and explain the four factors that influence asset demand. Which of these factors affect total asset demand and which influence investors to demand one asset over another?
6. Discuss the pros and cons of a subprime market for residential mortgages in the U.S.
7. How has the modern mortgage market changed over recent years?