D) our auto loan, your car will be repossessed because it has been for the loan. 20.If you pledged as A) interest B) collateral C) dividend D) commodity Part two: Ouestions and problems I.Why are financial markets important to the health of the economy? How can asymetric information lead to a bank panic? 3. 4. Try to analyze how the equilibrium interest rate changes using the liquidity prefere framework. 2. What is the mismanagement of financial liberalization of emerging market economies? How can a currency crisis lead to higher interest rates? S. 4