Identify whether the following cases mentioned in part 1 to 5 represent an “Aggregate Demand shock” OR “Aggregate Supply shock”, graphically sketch the impact of each shock within AD-AS framework, and discuss the role a stabilization policy can play in each case to counter the shock: 1. People living in the economy have become inclined […]
Question 1 (A): Explain and analyse how commercial banks, and other mortgage lenders, create and issue mortgage backed securities. (500 words) Guidance notes: Explanation of asset backed securities and in particular mortgage backed securities. Analysis of process of creation and issue of mortgage backed securities: mortgage origination; the role of SPV, structuring; credit enhancement […]
Finance and regulation “Behavioural finance may have a lot to say about how financial markets really operate and why much financial regulation is ineffective, but it is has very little to say about what regulators should do in the light of these insights.” Discuss.
