- The Federal Reserve entity that makes decisions regarding the conduct of the open market operations is?
- Why was the Federal Reserve System set up with 12 regional Federal Reserve banks rather than one central bank, as in other countries
- If Reserve Requirements were eliminated in the future as some economists advocate, what effects would this have on the size of market mutual funds?
- Approximately how many commercial banks in USA?
- What special problem do off-balance sheet activities present to bank regulators, and what have they done about it
- Why does imposing bank capital requirements on banks help limit risk taking?
- Why has the trend in bank supervision moved away from a focus on capital requirements to a focus on risk management?
- What are the main characteristics of money market securities?
- What are the major types of securities and who are the major participants in the money markets?
10.Explain why banks, which would seem to have a comparative advantage in gathering information, have not eliminated/remove the need for the money markets.
11.What types of risks should bondholders be aware of and how do these affect bond prices and yields?
12.What is a convertible bond? How does the convertibility feature affect the bond’s price and interest rate?
13.What is the purpose of the capital market? How do capital market securities differ from money market securities in their general characteristics?
14. What procedures can the Feduseto control the 3-month Treasury bill rate? Why does control of thisinterestrateimply the Fed will lose control of the Money Supply´
15.What are the advantages of amonetary targeting as a strategy for the conduct of monetary policy?
16. what is the quantitative easing and its effect of bank loans?
