I need all of the problems in the attached document completed except #7. I know how to do that problem and do not require assistance for it.

FI 423 Financial Markets and Institutions Chapters 1 - 5 Study Guide 1. Financial intermediaries include many types of entities such as commercial banks, finance companies, investment banks, and pension funds. What is the primary goal of all these intermediaries, and identify two problems that would exist if these firms did not perform this function. 2. How did the financial crisis cause a lack of liquidity in the financial markets? Specifically use debt securities and commercial paper in your answer. 3. In the business and household sectors of the economy, what effect does increasing interest rates have on the demand for loanable fund? Discuss the impact on the overall economy caused by the change in demand from these two sectors. 4. Growth growth growth. Isn't that what we strive for? Explain how economic growth can have a negative impact on the economy. 5. Explain the impact of changing debt credit ratings on the firms able to borrow funds. How can this potential affect shareholders? 6. If you anticipate that interest rates will rise next year and the year after that, why will you be willing to a lower yield on a one year investment? 7. If the annualized one-year is 6.25% today, and the annualized two-year rate is 8.05 today, what is the one-year rate expected to be one year from today? If a three-year security has an annualized rate of 9.0% today, what is the one-year rate expected to be two years from now? 8. Explain how the Fed would decide to lower interest rates, what method they would mostly likely use to accomplish this goal, how this method would be implemented, and what the expected outcome would be. 9. During the financial crisis of 2008-09, the Fed provided much needed liquidity to the financial markets. How did they accomplish this and why was it so important? 10. Fully discuss the impact of stimulative monetary policy on interest rates and business cost of borrowing. Why is it stimulative