SECTION C Answer ALL questions from this section Question 12: a) During the course, we have analysed banking crises and two recent major downturns: the 2007-2009 financial crisis and the Greek government-debt crises. Please, explain the two main hypotheses related to the development of a banking crisis. Moreover, outline the main events characterizing the downturns mentioned above, stressing the different roles of banks. Total for a): 15 marks b) Discuss the role of central banks and their policies. In particular, what is/are the mandate(s) of central banks? What are the monetary tools commonly used? Discuss the role of banks in transmitting monetary policies to the real economy. Please, make sure to describe the two economic mechanisms conjectured and empirically tested of such a transmission mechanisms. Total for b): 15 marks Total for Section C: 30 marks SECTION C Answer ALL questions from this section Question 12: a) During the course, we have analysed banking crises and two recent major downturns: the 2007-2009 financial crisis and the Greek government-debt crises. Please, explain the two main hypotheses related to the development of a banking crisis. Moreover, outline the main events characterizing the downturns mentioned above, stressing the different roles of banks. Total for a): 15 marks b) Discuss the role of central banks and their policies. In particular, what is/are the mandate(s) of central banks? What are the monetary tools commonly used? Discuss the role of banks in transmitting monetary policies to the real economy. Please, make sure to describe the two economic mechanisms conjectured and empirically tested of such a transmission mechanisms. Total for b): 15 marks Total for Section C: 30 marks