QUESTION 1 10 points Save Answer ANSWER ANY TWO OF THE FOLLOWING TWELVE QUESTIONS. YOUR ANSWER MUST BE WRITTEN IN FULL SENTENCES. EACH OF YOU ANSWER SHOULD BE AT LEAST 12 SENTENCES LONG. PLEASE TYPE YOUR ANSWERS INTO THE BOX BELOW. COPYING AND PASTING IS STRICTLY PROHIBITED AND WILL RESULT IN A MARK OF ZERO. 1. Explain the role of central banks and give examples of some major central banks. Discuss the key principles of macroeconomic stabilization policy. Distinguish between the reserve and fiat-based systems of supplying money. What are the most important price and growth indicators watched by the financial markets? 2. Explain the factors driving foreign currency movements. Describe the difference between spot and forward rates. What is the Big Mac Index? Distinguish between fixed and floating exchange rate regimes. Should Canada give up the floating rate regime and fix its currency to the U.S. dollar? 3. What is a stock share? Discuss the two types of stocks and their different voting rights. Describe capital gains and dividends. What is a stock exchange and what is a stock index? What are some major stock exchanges and stock indices in North America? If you had to choose an index fund, which of these indices would you want it to track? 4. Describe the roles of brokers, traders, and investment bankers. Explain the strategy of short selling and margin selling. What is an Initial Public Offerings (IPO)? How are stocks valued? Describe fundamental analysis and technical analysis. Which of these methods (fundamental or technical analysis) do you think is best for researching and forecasting future trends in stock prices? QUESTION 1 10 points Save Answer ANSWER ANY TWO OF THE FOLLOWING TWELVE QUESTIONS. YOUR ANSWER MUST BE WRITTEN IN FULL SENTENCES. EACH OF YOU ANSWER SHOULD BE AT LEAST 12 SENTENCES LONG. PLEASE TYPE YOUR ANSWERS INTO THE BOX BELOW. COPYING AND PASTING IS STRICTLY PROHIBITED AND WILL RESULT IN A MARK OF ZERO. 1. Explain the role of central banks and give examples of some major central banks. Discuss the key principles of macroeconomic stabilization policy. Distinguish between the reserve and fiat-based systems of supplying money. What are the most important price and growth indicators watched by the financial markets? 2. Explain the factors driving foreign currency movements. Describe the difference between spot and forward rates. What is the Big Mac Index? Distinguish between fixed and floating exchange rate regimes. Should Canada give up the floating rate regime and fix its currency to the U.S. dollar? 3. What is a stock share? Discuss the two types of stocks and their different voting rights. Describe capital gains and dividends. What is a stock exchange and what is a stock index? What are some major stock exchanges and stock indices in North America? If you had to choose an index fund, which of these indices would you want it to track? 4. Describe the roles of brokers, traders, and investment bankers. Explain the strategy of short selling and margin selling. What is an Initial Public Offerings (IPO)? How are stocks valued? Describe fundamental analysis and technical analysis. Which of these methods (fundamental or technical analysis) do you think is best for researching and forecasting future trends in stock prices