Week 1 Assignment

Week 1 Assignment Questions

You have some flexibility in the length of the essay, but always be concise and don’t go over one page per question. Writing well involves organization and editing. Use normal font size, 10 or 12, not smaller or larger. Always cite sources; no need to take space using official style rules, a brief citation of author’s last name, title of article, and date is enough. Never cut and paste – always use your own words.The Guideline Solutions document is posted on Monday or Tuesday following the weekly submission deadline; your essay must be submitted before then, or it can’t be graded. Pay close attention to the red-colored paragraph below.

Avoid repeating a litany of facts or charts/diagrams copied out of the readings. It’s not easy at this early stage of the course, but try to be interpretive, analytical and judgmental unless the question asks for facts or definitions. It is desirable to discuss any revelations you found in the material. What surprises or impresses you the most? What changes a previously-held misconception? How might this information help you in a practical way?

Think of the essay as the product of research into the subject at hand, except that the searching and digging for sources is done for you…the source material is in the assignment file; you work from there. Use Wikipedia or Google if necessary to refine your knowledge of terms/definitions, but don’t overdo it. This is the first of several assignments – you will extend and refine your knowledge from week to week, as you develop a critical mass of understanding about financial markets.

1. What are the necessary functions of financial markets?
2. Explain the essence of bank capital rules.
3. What is the connection between systemic risk and too-big-to fail?

4.  Your boss asked you to make an elevator speech explaining Dodd-Frank to your colleagues. Write that speech. Facts only; no opinions!

1. As a member of Congress, would you support strong Dodd-Frank regulations or vote to repeal it? Would you support a return to Glass-Steagall? Explain fully.
2. Is the financial services industry (Wall Street, taken broadly, not just in New York City) closer to a bullshit business or a business doing God’s work? Explain fully.