Question 1 (30 points)

(a) What is a Financial Crisis?

(b) Can Financial Crises be predicted?

(c) How have Financial Crises influenced the financial environment?

Question 2 (40 points)

Discuss the similarities and differences between the major Financial Crises of the 20th and 21st centuries.

Question 3 (30 points)

The monetary and financial operations of small states such as The Bahamas do not influence the world's financial environment, yet they are affected. What measures are appropriate for gauging the fallout from external financial crises? How might small states mitigate the negative impacts of external financial crises?

REQUIRED TEXT: Mishkin, F. (2014). The Economics of money, banking and financial markets (11^th ed.). New York: Addison-

Wesley.