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1. Unit 10: Banks, Money and the Credit Market [5 points] 1.1. [2.5 points] Use the optimal decision-making model (preferences and feasibility constraints) from Chapter

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1. Unit 10: Banks, Money and the Credit Market [5 points] 1.1. [2.5 points] Use the optimal decision-making model (preferences and feasibility constraints) from Chapter 10 and explain how different investment and saving options can determine consumption smoothing over time (verbal answer, 7 lines). 1.2. (2.5 points] Present one specific example from your explanation in 1.1.: draw the graph and explain with data its meaning (graphical, numerical, verbal answer, 5 lines). 1. Unit 10: Banks, Money and the Credit Market [5 points] 1.1. [2.5 points] Use the optimal decision-making model (preferences and feasibility constraints) from Chapter 10 and explain how different investment and saving options can determine consumption smoothing over time (verbal answer, 7 lines). 1.2. (2.5 points] Present one specific example from your explanation in 1.1.: draw the graph and explain with data its meaning (graphical, numerical, verbal answer, 5 lines)

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