1. Assume a US bank has a small portfolio of Euros what sort of exchange rate movement would the bank be most concerned about?
2. What financial instruments are most traded in capital markets?
3. Of the major tools of monetary policy why does the Fed so rarely use the discount rate to implement monetary policy?
4. Please briefly summarize the response of various central banks to address the worldwide financial crisis of 2008 2010.
5. Please briefly describe what a subprime mortgage is and the role these played in the financial crisis of 2008 2010.
6. Describe the difference between a regional bank and a money center bank.
7. What are the primary bank activities of smaller banks vs. larger banks?
8. A bank is considering holding one of two securities: A 30-year Treasury Bond which yields 7% and a 30-year municipal bond yielding 5%. If the banks tax rate is 30% which bond is the highest tax equivalent yield?
9. What are the forms of protection and regulations that are imposed on CBs to ensure their safety and soundness?
10. How and why is membership in Credit Unions limited?