Discuss how competition in the banking market can affect the risk-taking behaviour of banks

In the mid-twentieth century, thrifts lived by the so-called “3-6-3 rule” of banking: pay 3% on deposits, lend money at 6%, and hit the golf course by 3 p.m. Would the 3-6-3 rule work in today’s banking industry with the competition and regulations that are now in place?

Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and the асcount. This would also bring the leverage ratio from its initial value of to a new value of Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The size of the monetary base The total value of liabilities The return on each asset

3. What are the three common pitfalls that people make when they do "cost-benefit" analysis. Explain why the opportunity cost of walking downtown to save $10 on a $2000 laptop is the same as walking downtown to save $10 on a $25 book.

Can the banks make easy profits because the money multiplies? How? Is it fair and efficient? Is the basic structure of banking stable and fair? Could it be different?

A bank's liquid assets consist of?

Why banking system is said to be on fractional reserve.  Please explain.

"Banks make a profit by paying depositors a high rate to attract funds and making loans at a low rate to encourage borrowing." Is the previous statement correct or not?

Why are the number of traditional banking systems inindustrialized and developed countries declining?

Explain the functions of financialintermediaries?