1- Briefly describe the three models used to compute the price of a common stock.

2- Briefly explain the theory of rational expectations and the adaptive expectations.

3- Why the efficient market hypothesis does not imply that financial markets are efficient?

4- How valuable are published reports by investment advisors?

5- What is a financial crisis? Also, briefly explain the sequence of events in financial crisis in advanced economies.

6- Briefly explain the global financial crisis of 2007-2009.

7- What are collateralized debt obligations (CDOs)?

8- What are the actions (bailout) that U.S. government took in dealing with the crisis of 2007- 2009?

9- Briefly explain the structure of the Federal Reserve System.

10- What are the functions of the Federal Reserve Banks?

11- What are the duties of the board of governors?

12- Briefly explain the case for independence and the case against independence for the Fed.