Proponents argue that HFT aids our markets by providing increased ____________________.                         What is one counter-argument to this claim?  If we desire to thwart HFT, what is one legislative move that we can do to get them out of the market (i.e. not just banning them outright).  Describe what this would do.

Since late 2008, with T-bill rates near zero, the Fed decided to try _____________________________.   Describe this process in general in a few short sentences.  What does it entail and how is it different from the typical levers which the Fed pulls on:

An 18 year T-Bond can be stripped into how many separate securities? 

In theory, a decrease in reserve requirements will lead to an:

The duration of a bond increases when the coupon rate goes ______, and the maturity goes _____. 

The Fed changes reserve requirements from 10% to 9%, thereby creating $900 million in excess reserves. The total change in deposits (with no drains) would be 

  (30 pts)  Consider the overall linear, time-invariant (LTI) system shown below with discrete-time (DT) input sequence and output sequence . The overall system has impulse response and transfer function . In the block diagram,

“How much do I value the rewards I will receive for completing this task?” This question addresses:

Are the following statements True/False? Explain your reasoning in no more than two sentences8.1. Increasing the entropy of a cryptographic key reduces its predictability and improves its resistance to brute-force attacks. (2 points)  8.2. Because modeling is an abstraction of the system that will surely miss a lot of details, when we do modeling, we should model the system to as much detail as possible in all perspectives, such that the model is more realistic and a better approximation to the real system. (2 points) 8.3. Clustering is a supervised learning method. (2 points)  8.4. The difference between supervised learning and unsupervised learning is that supervised learning aims to identify patterns within data, while unsupervised learning focuses on predicting outcomes based on labeled examples.  (2 points)  8.5. A basic backdoor attack requires modifying all training data samples with the same unique trigger to embed malicious behavior into the model. (2 points) 8.6. A Backdoor Attack requires the attacker to have full access to the model parameters during training. (2 points)  8.7. Access Control Lists are more suitable than Capabilities Lists for distributed systems because permissions are managed centrally. (2 points)  8.8. In a system using Access Control Lists, permissions are attached to users as tokens, making it suitable for distributed environments. (2 points) 

Read the following scenario and identify which type of threat it represents according to the STRIDE model. Provide a brief justification (two to four sentences) for your choice.  4.1 . An attacker modifies a firmware update file for IoT devices to include malicious code. When users install the update, the devices become part of a botnet controlled by the attacker. (3 points) 4.2. An attacker exploits a vulnerability in the Windows Sticky Keys feature by booting into a repair disk and replacing the legitimate exe file with the command prompt executable (cmd.exe). After rebooting, the attacker uses the Sticky Keys shortcut (pressing Shift five times) at the login screen to open a command prompt with SYSTEM privileges. This allows the attacker to create a backdoor administrator account. (3 points)   4.3. A user accesses sensitive financial records but later denies having done so. Due to a lack of logging or insufficient non-repudiation measures, there is no evidence to prove the action occurred. (3 points)   4.4 . An attacker intercepts network traffic and uses a stolen session token to impersonate a legitimate user, gaining access to the victim’s account without knowing their credentials. (3 points)