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) Due to last year’s Brexit vote, the British pound and Euro have both depreciated 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) does another round of quantitative easing? 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 is happening in the U.S. bond market due to the uncertainty in the rest of the world and how this impacts the price and interest rates of U.S bonds? Who does this help and hurt? (10)
