PLEASE ANSWER THESE 8 QUESTION IN THE EXAM STYLE, THANKS

1. Describe the principles of investment banking. Discuss the role of investment banks in the 2008 nancial crisis. 2. Describe the role of the clearing house and central gognterpagtjgs in the 2008 nancial crisis recovery. 3. Discuss why money markets are important in the nancial system. Who are the key participants in money markets? 4. What determines exchange rates? Discuss two simple models of exchange rate determination. Section A 1. What are the main tools used by central banks to manage interest rates in a tight monetary policy? 2. Describe the signs of stress after the Lehman bankruptcy and its impact on the money markets. 3. Explain the relative Purchasing Power Parity Theory (PPP) and provide an example. 4. Explain how adverse selection and moral hazard influence the financial system