TURN YOUR ANSWERS IN WORD.

Define the purpose of the Commercial Bank Stress Tests

a. Define the credit, default and liquidity risks that commercial banks face.

b. Is regulation working the same for all banks? Explain.

c. How financial institution size is correlated with overall uncertainty in the economic and financial landscape?

d. Define the term financial uncertainty and explain how the Too Big to Fail (TBTF) issue may affect it.