Section A This section carries 50% of the total marks. Answer ONE question only (maximum word count 1,000). All questions carry equal marks. 1. Competition within the banking sector has been a topic of long term interest to both regulators and academics. Discuss how competition might manifest itself in banking, how it might be measured and how it might affect the stability of the banking sector. 2. The Global Financial Crisis highlighted the issue of* Too Big To Fail'. Discuss what is meant by this term and compare and contrast it to Globally Systemically Important. Discuss why banks seek to be larger, the costs and benefits of large banks and possible solutions for dealing with the 'Too Big To Fail' issue. Section B This section carries 50% of the total marks. Answer ONE question only (maximum word count 1,000). All questions carry equal marks. 1. Critically discuss why establishing a deposit insurance scheme can give rise to moral hazard issues. Discuss how the policy maker can mitigate such issues. 2. Discuss the various instruments that Central Banks can utilise to manage monetary policy. Discuss critically why Central Banks have been relying heavily on expansionary monetary policies especially in the recent past.

Section A This section carries 50% of the total marks. Answer ONE question only (maximum word count 1,000). All questions carry equal marks. 1. Competition within the banking sector has been a topic of long term interest to both regulators and academics. Discuss how competition might manifest itself in banking, how it might be measured and how it might affect the stability of the banking sector. 2. The Global Financial Crisis highlighted the issue of* Too Big To Fail'. Discuss what is meant by this term and compare and contrast it to Globally Systemically Important. Discuss why banks seek to be larger, the costs and benefits of large banks and possible solutions for dealing with the 'Too Big To Fail' issue. Section B This section carries 50% of the total marks. Answer ONE question only (maximum word count 1,000). All questions carry equal marks. 1. Critically discuss why establishing a deposit insurance scheme can give rise to moral hazard issues. Discuss how the policy maker can mitigate such issues. 2. Discuss the various instruments that Central Banks can utilise to manage monetary policy. Discuss critically why Central Banks have been relying heavily on expansionary monetary policies especially in the recent past.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Money And The Financial System

Section: Chapter Questions

Problem 4.11P

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