Assignment 1:
Why is the stock market so important to individuals, firms, and the economy?
Your posting should be at least 50 words.
Assignment 2
Explain the logic underlying the law of one price and the theory of purchasing power parity.
How will a decrease in the federal government’s budget deficit affect the equilibrium interest rate in the bond market? Explain using the bond demand and supply framework.
Your posting should be at least 150 words.
Assignment 3:
Distinguish between adverse selection and moral hazard.
What are a bank’s major sources and uses of funds?
Your postings should be at least 150 words.
Assignment 4:
Describe the structure and responsibility for policy tools in The Federal Reserve System
Describe what criteria is applied when choosing a policy instrument.
your postings should be at least 150 words.
Assignment 5:
How is credit risk related to the concepts of adverse selection and moral hazard?
your postings should be at least 100 words
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