2. Explain the full funding policy proposed by Alexander Hamilton and the controversies around it. Why did he think debt is a national blessing?

3. In which way are exchange traded funds (ETFs) a safer option to invest than the purchase of individual shares? Are there any ETFs which are deemed riskier than others?

4. As you probably know, Tesla has made significant investment in the production of batteries for electric vehicles (EVs) and lithium is one of the key metals used to make EV batteries. Assume that Tesla is worried about a surge in lithium prices, thus it wants to use futures contracts to lock in the price of lithium in the next 6 months. Explain how futures contracts can help Tesla hedge against lithium price volatility. Is there any default risk associated with futures that Tesla may face?

5. Describe how the Prospect theory of behavioural finance can help explain some common stylized facts observed in financial markets.

6. What possible benefits do CBDCs create? In what ways could they be a threat to financial stability?