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1. Concisely explain the economic role of brokers, dealers, investment bankers and the role of the New York Stock Exchange specialist (please, make sure that your answer cover the entire question).
2. Calculate the amount of excess reserve of a bank with 15,000,000 of reserve and 100.000,000 of deposits if the reserve requirement is 10%
3. Suppose the yield on a 30-year corporate bond rated Aaa is 9.50 percent and the yield on a 30-year Treasury bond is 9.00 percent. What is the default risk premium? Would you expect a higher or lower default risk premium on an A-rated bond?
