How has deregulation of the financial services industry affected the makeup of financial intermediaries? How do you think intermediaries’ characteristics will change in the future?
1. How has deregulation of the financial services industry affected the makeup of
financial intermediaries? How do you think intermediaries’ characteristics will
change in the future?
2. How do banking organizations in the United States differ from banking organizations
in other countries? Why are they different?
3. How is money created in a banking system that has fractional reserve requirements
(i.e., a fractional reserve system)?
4. Describe the open market operations undertaken by the Federal Reserve. What
type of trades would the Fed make if it wanted to increase interest rates?
5. How would funds—that is, the money supply—in the United States be affected
if the Federal Reserve increases reserve requirements? Give an example.
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