a)	Define and critically analyse the concept and role of credit risk in the lending function of a bank.
	(15 marks) Restrict the Answers to the Banking industry
b)	Discuss the five main factors that influence the contractually promised return on a loan.
	(10 marks)
c)	Suppose that the Base Lending Rate (BR) is 6%, the credit risk premium () is 3.5%, the administration fee (f) is 0.152%, the compensating balance requirement (b) is 6.5% and the reserve requirement (RR) is 10.5%, calculate, from the lender perspective, the contractually promised return on a loan per lent (k).
	(8 1/3 marks)
	(TOTAL 33 1/3 MARKS)
a)	Discuss the concept of bank failure and the related main determinants.
	(13 1/3 marks)
b)	Critically discuss the key causes and phases of the 2007-global financial crisis (GFC) and the associated policy responses.

you don't have to see the picture. thd question is written below. thats exactly it us to be done.