1) Which of the following could lead to a systemic risk?

A. A sovereign debt that is backed by the taxing power of a rich and economically stable country

B. A major insurance company on the brink of bankruptcy. This insurance company is responsible for the vast majority of the credit risk insurance

C. Massive bank failures lending to the insolvency of the only deposit insuance agency

D. A and C

E. B and C

2) Which of the following individuals is a well-known currency dealer whose trading activities have been linked to a number of currency crises?

A. Ivan Boesky

B. George Soros

C. Ken Lay

D. Bernard Ebbers

3) At the height of the Asian financial crisis in 1997, the foreign debt-to-GDP ratios of the affected countries rose significantly due mainly to

A. Depreciation in the values of their domestic currencies

B. Huge derivatives trading by the central banks of the countries

C. Excessively low inflation rate in these countries

D. None of the above