Question 4 (20 marks = 4 marks each)

a. List five typical items on the personal balance sheet of an individual and order them according to the accepted conventions.

b. One of your classmates posted on Canvas an article with the title "The world is not ready for higher interest rate". Please in a paragraph explain first what is the meaning and importance of an interest rate in any economy, and after based on what we learned in the class discuss the title and meaning of the article.

c. According to the Canvas article " London and Hong Kong are the cities most at risk of a housing bubble". Please in a paragraph explain first what is the meaning of a housing bubble and provide your view on whether the bubble would happen/is happening in Hong Kong

d. Assume that you are an experienced stock investor and that freshman student at CityU asks you to tell her/him what are the major stock indices in Hong Kong, China, Japan, Germany, France, UK and USA. Please name them all and help the student.

e. Explain in a paragraph why we should be careful while using credit.