Question 1: (a) Compare and contrast key role and functions of the capital markets with those of the money markets. (b) Critically explain how Quantitative Easing (QE) by the Bank of England in recent years, via open market operations in the money markets, has impacted bond and stock, prices including housing prices in the capital markets in the United Kingdom. (Please include recent financial charts and tables to support your analysis). Question 2: (a) Distinguish between different levels of financial market efficiency. Give examples to illustrate your answer. (b) With close reference to the efficient market hypothesis (EMH) literature and by using relevant empirical evidence of data and graphical analysis of stock prices and daily stock returns, for a selected 90-day period, critically assess the" efficiency" of London Stock Exchange (LSE) market in recent years. Explain the implications of your results. (Please see Guidance and Preparation Note below for further information). Question 3: With close reference to recent movements in UK Pound/US Dollar spot exchange rate, critically discuss main causes of exchange rate volatility in the foreign exchange markets. (Use relevant financial data and charts to illustrate your answer). Question 4: (a) Critically explain each one of the following financial terms: i. Asymmetric information ii. iii. Moral hazard Adverse selection Give examples in each case to illustrate your answer. (2) (b) Making references to asymmetric information, moral hazard and adverse selection, critically discuss why financial markets should be regulated. sualns:

Question 1: (a) Compare and contrast key role and functions of the capital markets with those of the money markets. (b) Critically explain how Quantitative Easing (QE) by the Bank of England in recent years, via open market operations in the money markets, has impacted bond and stock, prices including housing prices in the capital markets in the United Kingdom. (Please include recent financial charts and tables to support your analysis). Question 2: (a) Distinguish between different levels of financial market efficiency. Give examples to illustrate your answer. (b) With close reference to the efficient market hypothesis (EMH) literature and by using relevant empirical evidence of data and graphical analysis of stock prices and London Stock Exchange (LSE) market in recent years. Explain the implications of your results. (Please see Guidance and Preparation Note below for further information). Question 3: With close reference to recent movements in UK Pound/US Dollar spot exchange rate, critically discuss main causes of exchange rate volatility in the foreign exchange markets. (Use relevant financial data and charts to illustrate your answer). Question 4: (a) Critically explain each one of the following financial terms: i. Asymmetric information ii. Moral hazard iii. Adverse selection Give examples in each case to illustrate your answer. (b) Making references to asymmetric information, moral hazard and adverse selection, critically discuss why financial markets should be regulated