1. How do monetary policy actions made by the Federal Reserve impact interest rates? 2. a. What are the reasons liquidity risk arises? b. How does the degree of liquidity risk differ for different types of financial institutions? 3. a. What are four foreign exchange risks faced by financial institutions? b. What is the spot market for foreign exchange? What is the forward market for foreign exchange? What is the position of being net long in a currency? 4. Why is the measurement of market risk important to the manager of a financial institution? 5. Describe the advantages and disadvantages of Fintechs compared to incumbent banks.