Question 1:
Discuss and illustrate out the main theories which describe the term structure of interest rates.
Question 2:
‘Assets’ returns must always be assessed in terms of their real values’. Critically discuss on this statement.
Question 3:
Illustrate out the nature of hedging, arbitrage and speculation. Provide an illustration of each strategy in the context of the stock markets and foreign exchange.
Question 4:
Write down the main risks facing a bank in its traditional business.
Question 5:
Why banks singled out for special regulation?