16. According to Calomiris and Haber, what led to Britain's growing emancipation of

its people in the 19th Century?

(A) Growing socialist and unionist activity in London.

(B) The spread of Enlightenment ideas.

(C) The House of Lords advocating on behalf of the masses.

(D) Mass mobilization warfare.

17. According to Calomiris and Haber, which form of democracy best ensures property

rights for banks, along with a stable nancial system?

(A) Liberal.

(B) Leftist Populism.

(C) Welfare-state.

(D) Rightist Populism.

18. You manage an Islamic hedge fund based in Tehran, Iran. You strongly believe

that the Iranian currency, the rial, is about to experience a massive de

ation. Which

of the following strategies would best ensure prots during the de

ation, while being

shariah-compliant?

(A) Purchasing 10-year 10,000 rial face-value bonds with a coupon of 1,000 rial per

year. You manage to purchase them at a discount of 1,000 rial below face value.

(B) Holding cash.

(C) Using shariah-compliant leverage to purchase residential real estate in downtown

Tehran.

(D) Selling ijara-structured sukuk bonds, which are backed by rents on condominiums

that you own. You sell the bonds at a discount to face value.

19. Which of the following is a liability for a commercial bank?

(A) Loans to businesses.

(B) Government bonds.

(C) Deposits.

(D) Mortgage loans.

20. In which market does the government raise funds for its short-term projects?

(A) The money market.

(B) The overnight market.

(C) The OTC derivatives market.

(D) The commodities market.