1.Answer the following questions.

a.How can government fiscal imbalances lead to a financial crisis?(2 marks)

b.How can financial liberalization lead financial crises?(2 marks)

c.How can opening up to capital flows from abroad lead to a financial crisis?(2 marks)

d.How can a bursting of asset-price bubble in the stock market lead to a financial crisis?(2 marks)

e.What is shadow banking system, and why was it an important part of the 2007-2009 financial crisis?(2 marks)