1. Describe how consumers and businesses change their behaviour in response to rising or falling interest rates. 2. Describe how consumers and businesses change their behaviour in response to rising or falling foreign exchange rates. 3. Describe how financial markets can affect economic growth and poverty. 4. If you suspect that a company will go bankrupt next year, which would you rather hold- bonds issued by the company or stocks issued by the company? Provide a detailed rationale for your answer. 5. Consider a case where an individual can obtain a loan of $5 000 to buy a car today knowing that the car will enable that person to earn $10 000 in extra income in a year because they can get a job as a travelling salesman. Is this a good decision to make if the cost of borrowing the $5 000 is 90% interest, which must be paid annually? Provide a detailed rationale for your