Financial intermediaries pool the funds of:

First National Bank Assets Liabilities and Net Worth US Treasury Bonds $450,000 Net Worth $500,000 Reserves (Cash) $175,000 Checkable Deposits $250,000 Loans $125,000 Second National Bank Assets Liabilities and Net Worth US Treasury Bonds $100,000 Net Worth $250,000 Reserves (Cash) $250,000 Checkable Deposits $100,000 Third National Bank Assets Liabilities and Net Worth US Treasury Bonds $900,000 Net Worth $1,000,000 Reserves (Cash) $350,000 Checkable Deposits $500,000 Loans $250,000The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers), then $_____________ is the resulting change to the loan creating potential of the whole system (these three banks) as a result of Second National Bank customers depositing an additional $400,000 in their Checkable…

Can at least six distinct policies for the safety of a financial system be designed and considered for immediate implementation?

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

Analysis of how the actions of financial intermediaries can result in an economic crisis e.g., the securitisation of mortgages and development of subprime mortgages (market) and the role of intermediaries in recovery

Explain the functions of financialintermediaries?

Federal Reserve System.

List the objectives that banks have for buying securities. Explain the motive for each.

Banking regulation suffers from the principal-agent problem. Describe how this problem relates to regulators and politicians.

Explain the four different layers of protection and regulation that are imposed by regulators of commercial banks to ensure their safety and soundness