Q1. If yield curves, on average were flat
a) Illustrate what would this say about the term (liquidity) premiums in the term structure?
b) Would you be more or less willing to accept the expectation theory? Elucidate
Q2. Monitor is easy in a partnership than a corporation where shareholders monitor directors. In what way it is also is not?
Q3. Based on Chinese government's stand point, is it logical to impose the trade barrier? These days China constrains economy globally. So if trade barrier is reduced the Chinese economy will go down also affects the economy of the whole world. Do you agree or disagree with this argument?