1. Discuss the stability/instability of the financial system.  Include:

1. 1. Four common elements in modern U.S. banking crises (class notes).
   2. Shadow banking system and too big to fail doctrine.
   3. Frequency of financial crises since deregulation began in 1980.
   4. Your opinion on how to best management the financial system.
2. Discuss liquidity management of a bank and the tools and options to address liquidity by bank managers.

Answer rating: 100% (QA)

Common Elements in US Banking Crises Asset Price Bubble Speculative bubbles in asset markets such as real estate or stocks can lead to unsustainable increases in asset prices followed by sharp decline... View the full answer