1. a) Why does LIBOR receive so much attention in the global financial markets?

b) Why were LIBOR rates so much higher than Treasury yields in 2007 and 2008? What is needed to return LIBOR rates to the lower, more stable levels of the past?

c) What were the three key elements of the package used by the U.S. government to resolve the 20082009 credit crisis?

d) Why has the case of Portugal been termed a case of contagion rather than a sovereign debt crisis?

e) Whats is a sovereign default?