Reference no: EM13151416

1. Find a recent (April 2012- present) money and banking related article in the media (the Economist, Globe and Mail, National Post, New York Times, etc.,), and attempt to explain parts or all of it using the tools we learned in class. Highlight the sentences that you analyze, and hand in the article along with your work. Use written and graphical explanations.

2. Outline the major factors that contributed to the financial crises of 2007-2009, relating to factors within the U.S. financial system and outside factors.

3. Predict and explain what would happen to the yield spreads in response to the following macroeconomic events: (i) recession ; (ii) high inflation; (iii) stock market increase.

4. Because diversification is a desirable strategy for avoiding risk, it never makes sense for a financial institution to specialize in making specific types of loans." Is this statement true, false, or uncertain?

5. "Given the high value of the Canadian dollar relative to the U.S. dollar, Canada should lower the value of the dollar and keep it at this lower level, that is be on a fixed exchange rate system as opposed to a flexible exchange rate system." Comment on this statement, outlining whether you agree or disagree with it and explain why.