Q4 (a) The subprime mortgage crisis, widely known as the global financial crisis 2008, has been one of the worst crises the world had ever seen. It began with the housing market bubble in the United States, created by an excessive load of mortgage-backed securities that bundled high risk loans. Reckless lending to people who posed high credit risks which subsequently resulted in numbers of loans in default, has led many financial institutions to fail. Although the economic environment began to recover to its normalcy after several years, the consequences caused by this crisis such as high numbers of corporate defaults, thousands of job losses, stock indices plummeted, among others, has to some extent shaken the foundations of the global financial system. Discuss THREE (3) lessons learned from the crisis for investors. (6 marks) (b) Describe THREE (3) exposures to exchange rate risk with an example. (6 marks)