Fiance (Reserved for HIFSA SHAUKAT)
hexw7927
fsmi____quextion.docxSECTION A
1. Fully explain the following terms or concepts:
a) Money
b) Short run exchange rate determination
c) Investment Banking
d) Asset Transformation
Section B
1. Compare the function of MAS (function, objective, characteristic)
2. With reference to appropriate theory and evidence, Discuss the difference interest rate in the market for bonds.(Supply and demand )
3. When the finance crisis occur, why the damaging the economy?
4. Securitization – How it contribute to the subprime crisis.
Section C
1. Function of financial intermediary (+Delegated monitoring)
2. Forward contract & option and how it can be used to hedge currency risks. Explain with the aid of an example
3. Deposit insurance and bank regulation. Advantage & Disadvantage.
4. The process of maturity transformation and how it leads to bank run
