Assignment 2–Spring 21-22
| Course Code: FIN325 section 1 | Course Name: Financial Markets and institutions |
| Date of Examination: Due date 21/04/2022 | Time of Examination: |
| Location of Examination: online assignment | Instructor(s): InsafMamoghliLahouel |
| Number of Students: 32 | Number of Pages: 3 |
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INSTRUCTIONS – READ CAREFULLY
- Attempt All Questions.
| Course Learning Outcomes | Question | PLO |
| CLO2: Apply tools and approaches to review past financial crisis based on bank regulation. | 1-2-3 | 4,7 |
| CLO3: Analyze the role of central banks in setting monetary policies. | 4-5-6-7 |
BREAKDOWN OF GRADE
| Q1=>Q7 | Total |
| 1-1-2-2-2-2-2 | /12 |
Instructions:
- Answer the following Questions.
- This is a group assignment (4 students per group).
- ONLY ONE student from each group should submit this assignment on Turnitin.
- Respect the word count for each question.
- Provide sources/references for each question.
- This is a Turnitin assignment, plagiarism will not be tolerated (except for definitions/statistics)
- The following questions should be addressed using rigorous analysis backed by relevant economic and financial data.
- 500 to700 words per question size 12 double space.
- You must provide a reference section listing all reports, books and articles cited and used.
- Due date 21/04/2022.
Questions
- Explain how the US subprime assets and oil prices affectedthe GCC economies during the global financial crisis 2008-2009. (1 Mark)
- During 2008-2009 financial crisis, were GCC commercial banks and sovereign wealth funds affected? Explain your answer by discussing the exposure of commercial banks and government to the subprime assets.. (1 Mark)
- Analyze the role played by bank’s quality assets in GCC countries during the crisis financial crisis.(2 Marks)
- Explain how the prudential regulations and the stress testscan thwart the moral hazard problem and excessive leverage in financial institutions. (2 Marks)
- List and explain the policies that were implemented in the GCC countries to mitigatethe effects of the crisis. (2 Marks)
- To what extent did these policies succeed in alleviating the adverse effects and helping economic recovery? (2 Marks)
- Draw the main lessons that can be drawn from dealing with the financial crisis in the region and that could be useful in dealing with future similar shocks.(2 Marks)