8 Money

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School

Georgia State University *

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Course

2105

Subject

Economics

Date

Apr 3, 2024

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pdf

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2

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ECON in Our World Course: ECON 2105 Topic Module 8. Monetary System and Money Individual or Group Activity: Individual Assignment Submission Notes: Each student should submit one copy. Assignment Type: Open ended with short answer Directions Data: The below data shows the number of Commercial Banks of the United State of America.
Figure 1 : Number of Commercial Banks in the United States by Asset Volume https://fred.stlouisfed.org/graph/?g=BJto Discuss: a. Compare the evolution of the number of commercial banks with assets of less than $100 million with that of the number of commercial banks with assets between $100 and $300 million. How are they different and how are they similar? They are similar because they both have assets of $100 million. They are different because the amount of banks with $100 million decrease while the banks with $100 million - $300 million increased. b. Consider the period of time immediately following the 2007-2009 recession. How have the number of commercial banks with assets between $100 and $300 million and the number of commercial banks with assets between $300 million and $1 billion changed? Banks with assets between $100 million - $300 million decreased after the recession. Banks with assets between $300 million - $1 billion remained around the same. c. Overall, how is the structure of the U.S. banking industry changing in terms of the asset size of the average commercial bank? What impact would you say this change has on the supervisory duties of the Federal Reserve System? The number of banks with smaller assets have decreased and bigger banks control more assets. For the supervisory duties of the Federal Reserve System, the consolidation of banks have made it a lot more easy to handle. It is also easier for the Fed to cooperate with banks.
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