5. Financial journalist James Stewart notes that in contrast to its actions with respect to Lehman Brothers: "the Fed did lend into continuing runs at both Bear Stearns and A.I.G., although officials argued then that those companies had adequate collateral to guarantee repayment." (a) (b) What does Stewart mean by "lending into continuing runs"? Why would central banks lend into runs at financial firms? Why is the issue of whether Bear Stearns and AIG held sufficient collateral important? Is setting this criteria important for the soundness of the financial system? Briefly explain. (c) How does your answer to part (b) relate to the Fed's decision not to lend to Lehman Brothers in the days before its bankruptcy?

54.What are the implications of a liquidity trap for the Federal Reserve? 55.(Consider This)  How did the consolidated balance sheet of the 12 Federal Reserve banks change during the severe recession of 2007–2009?

1. If one still argues that the monetary policies conducted by the Federal Reserve is heavily influenced by the Congress and the White House, what could be the evidence we can find in the system which supports the argument? (briefly explain in a paragraph or so)

4*******************   4)Why did the Financial Crisis and the Great Recession cause the FED to alter its monetary policy from using open market operations to target the federal funds rate to establishing a corridor between the IOER and the discount rate through which the federal funds rate would move over time?

5. The Federal Reserve's organization While all members of the Federal Reserve Board of Governors vote at Federal Open Market Committee (FOMC) meetings, only bank presidents are members of the FOMC. of the regional The Federal Reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? OUS banks that cannot borrow elsewhere OUS state governments when they run short on tax revenues Governments in developing countries during currency crises The Federal Reserve's primary tool for changing the money supply s In order to increase the number of dollars in the US economy (the money supply), the Federal Reserve will government bonds.

3. Discuss the five stages in the evolution of the international monetary system (IMS) and the main characteristics of each stage. Requirements: your answer to this question should be no less than 300 words