I am working on some economic questions, and need help
example questions
1. Explain the difference between debt finance and equity finance.
2) What is the main advantage of holding a stock mutual fund rather than an individual stock?
3) What are adverse selection and moral hazard? How do banks mitigate these problems?
4) How does the leverage ratio influence a financial institution’s stability in response to bad economic news?
5) Explain how a financial crisis reduces the aggregate demand for goods and services.
6) What does it mean for a central bank to act as lender of last resort?
7) What are the pros and cons of using public funds to prop up a financial system in crisis?
complete see the attachment
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