The economics of money, banking, and financial markets

  7.  What is a credit spread? Why do credit spreads rise 

significantly during a financial crisis?

  8.  Some countries do not advertise that a system of 

deposit insurance like the FDIC in the United States 

exists in their banking system. Explain why some 

countries would want to do that.

  9.  Describe the process of “securitization” in your own 

words. Was this process solely responsible for the Great 

Recession financial crisis of 2007–2009?

 10.  Provide one argument in favor of and one against the 

idea that the Fed was responsible for the housing price 

bubble of the mid-2000s.