SECTION C Answer ALL questions from this section Question 12: a) We have analysed two significant crises during the course: the 2007-2009 financial crisis that originated in the United States and the Greek government-debt crisis. Please, briefly summarize them, stressing the specific triggers and vulnerabilities characterizing these two events, discuss banks' role, and outline new regulations implemented as a consequence. Total for a): 20 marks b) We have discussed the role of central banks and the real effects of monetary policies. Please, describe the existing empirical evidence suggesting a transmission mechanism from the financial to the real economy. Explain the economic mechanism of the two channels described in class (i.e., balance-sheet and lending channel). Moreover, based on the material covered during the course, explain the economic mechanism used by central banks to affect the market interest rate using monetary policies. Please, comment on how banks' intermediation profit is affected by expansionary or contractionary policies. Total for b): 20 marks Total for Section C: 40 marks