b Briefly explain two common factors not included in part a above that caused

B briefly explain two common factors not included in

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b) Briefly explain two common factors (not included in part a above) that caused the steep declines in the stock prices of AIG and Manulife Financial. (4 marks)1.) Not hedging liabilities – explain briefly the similarity between Manulife’s Income Plus funds and AIG’s issue of CDS’s. Page 2 of 8
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24. Leading Indicatorsa) Changes in money supply is often considered a leading indicator. List two ways the Bank of Canada can increase money supply during recessionary times. (4 marks) , b) On Friday, Feb 7, 2009 it was reported that Canadian employment fell by 129,000 jobs in January (-0.8%), pushing the unemployment rate up 0.6 percentage points to 7.2%. This 129,000 drop in employment exceeds any monthly decline during the previous economic downturns of the 1980s and 1990s. A similarly weak employment number (598,000 jobs lost) was reported for the United States. However both the TSX and S&P500 recorded stock market gains later that day. Brieflyexplain two reasons forthis apparent contradiction. (4 marks) .
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