Response to the following questions:
1. Describe the unprecedented steps the Federal Reserve took with respect to the discount window operations during the financial crisis.
2. Why does deposit insurance deter bank runs?
3. What is the greatest cause of liquidity exposure that property-casualty insurers face?
4. How is the liquidity problem faced by investment funds different from those of DIs and insurance companies?
If possible, please give examples to better understand your response.