Financial Markets and Institutions Fin 350 Online Take Home Final Exam Winter 2022 1) What are the Goals of the World Bank and the IMF?  Why are some people upset and protesting about the World Bank and IMF? (15 points) 2) Give the pros and cons of Flash Trading and Dark Pools

Financial Markets and Institutions

Fin 350

Online

Take Home

Final Exam

Winter 2022

1) What are the Goals of the World Bank and the IMF?  Why are some people upset and protesting about the World Bank and IMF? (15 points)

2) Give the pros and cons of Flash Trading and Dark Pools. How and should the U.S. government regulate them? (15 points)

3) If the British pound and Euro are both depreciating relative to the dollar, how does this impact exports and imports, AD and GDP? What should the Fed. due to respond? (20 points)

4) What happens to the value of the dollar if the European Central Bank (ECB) increases its money supply and lowers interest rates?  How will this impact the value of the dollar, exports and imports, AD and GDP? (20)

5) What are 5 financial innovations and deregulations that led to the financial crisis in 2008?  What are 5 policy responses by the Federal Reserve and the U.S. Government and Treasury department that helped us to get out of the financial crisis?  Who are the winners and losers? (20)

6) Explain the “flight to quality” that happened during Covid and explain how this impacts the price and interest rates of less developed countries bonds? Who does this help and hurt? (10)