Explain the difference between debt finance and equity finance.
What is the main advantage of holding a stock mutual fund over an individual stock?
What are adverse selection and moral hazard? How do banks mitigate these problems?
How does the leverage ratio influence a financial institution’s stability in response to bad economic news?
Explain how a financial crisis reduces the aggregate demand for goods and services.
What does it mean for a central bank to act as lender of last resort?
What are the pros and cons of using public funds to prop up a financial system in crisis?