I. Describe the types of risks faced by credit institutions in carrying out their activities. (b) What is the Solvency Ratio of credit institutions and what is the purpose of the setting of a minimum value for it by supervisors? (c) What are the advantages and disadvantages of the Solvency Ratio as currently applied in developed Financial Systems?

II. An investor bought a bond three years ago at its nominal value, i.e. for EUR 1 000. The bond has a life of 10 years and an issue interest rate of 10%. Coupons are paid once a year and the compounded annually. Now that interest rates have fallen and the new new securities with the same characteristics yield 8%, the holder wants to wants to sell it. ) At what price should the bond be sold? b) If it is sold at that price, what is the investor's return? c) What factors affect the volatility of the economic value of the bond and why?

III. The required reserves are 0 percent on the first $6.0 million in transaction deposits, 3 percent on amounts between $6.0 million and $42.1 million, and 10 percent on amounts over $42.1 million.