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What factors have led to the dominance of the banks? Prove explanations in detail with an example
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- Which of the following is not a central bank? a. The Bank of England b. The Bank of Japan c. The Bank of America d. The Federal ReserveHank is confused as to what banks do. He reads that banks “transform assets,” but he has no idea what that means. How would you explain asset transformation to Hank?In 2007-2009, The US experienced a serious housing and financial crisis that took almost 10 years to recover. In the first discussion forum, we will discuss the following questions. 1. What is a bank run? What is the purpose of the Glass-Steagall legislation?
- “When a commercial bank makes loans, it creates money; when loans are repaid, money is destroyed.” Explain.What is the theory of bureaucratic behavior and how can it be used to explain the behavior of the Federal Reserve?Explain any four instruments that the central bank can use to regulate the financial system?
