Task: Read the book “Money, Banking and the Financial System” and prepare an economics assignment answering the below questions: 1. How can a “bad” company be a “good” stock? 2. Why did some investors consistently invest in stocks from 2000-10, even though they received a negative real return over that period? 3. Why might a bank buy a credit default swap (CDS)? What counterparty risk does the bank buyer incur from holding the CDS? 4. Why do low inflation countries tend to have appreciating currencies and high inflation countries have depreciating currencies? 5. Does a high yen mean that it takes more or less yen to exchange (purchase) one US dollar? Does the high yen hurt or help Japanese exporters? How could a high yen help elderly people in Japan?
Subject Name: Economics
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