Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 25, Problem 14APA
To determine
Explain the role of the Federal Deposit Insurance Corporation (FDIC) in the banking system.
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Students have asked these similar questions
How many banks failures occurred in the United States during 2017
What were the total assets and total deposits held by the banks that failed during 2019?
© Macmillan Learning
What is the bank's net worth?
Assume that the T-chart shows the financial position of a small local bank.
Assets
Loans: $27.00
Bonds: $13.00
Reserves: $43.00
Liabilities
Deposits: $30.00
Millennials Should Shop Around for Banks
Banks are in business to make money for their shareholders, not to put the interests of customers first.
This key fact should not be overlooked. Banks sell financial services and compete hard for business. They
want to be seen as the friend of students and offer no-cost accounts. But banks are not equal. By
shopping around, you can get the deal thať's best for you.
Source: The Globe and Mail, September 19, 2016
Why would banks want to be seen as friends of students and offer student accounts with no charges?
Banks want to be seen as friends of students and offer student accounts with no charges
O A. to maximize profit
O B. because it is good public relations
OC. to increase liquidity
O D. because they care about the future generation
Chapter 25 Solutions
Macroeconomics
Ch. 25.1 - Prob. 1RQCh. 25.1 - Prob. 2RQCh. 25.1 - Prob. 3RQCh. 25.1 - Prob. 4RQCh. 25.1 - Prob. 5RQCh. 25.2 - Prob. 1RQCh. 25.2 - Prob. 2RQCh. 25.2 - Prob. 3RQCh. 25.2 - Prob. 4RQCh. 25.2 - Prob. 5RQ
Ch. 25.3 - Prob. 1RQCh. 25.3 - Prob. 2RQCh. 25.3 - Prob. 3RQCh. 25.3 - Prob. 4RQCh. 25.3 - Prob. 5RQCh. 25.4 - Prob. 1RQCh. 25.4 - Prob. 2RQCh. 25.4 - Prob. 3RQCh. 25.5 - Prob. 1RQCh. 25.5 - Prob. 2RQCh. 25.5 - Prob. 3RQCh. 25.5 - Prob. 4RQCh. 25.5 - Prob. 5RQCh. 25.6 - Prob. 1RQCh. 25.6 - Prob. 2RQCh. 25.6 - Prob. 3RQCh. 25.6 - Prob. 4RQCh. 25 - Prob. 1SPACh. 25 - Prob. 2SPACh. 25 - Prob. 3SPACh. 25 - Prob. 4SPACh. 25 - Prob. 5SPACh. 25 - Prob. 6SPACh. 25 - Prob. 7SPACh. 25 - Prob. 8SPACh. 25 - Prob. 9SPACh. 25 - Prob. 10APACh. 25 - Prob. 11APACh. 25 - Prob. 12APACh. 25 - Prob. 13APACh. 25 - Prob. 14APACh. 25 - Prob. 15APACh. 25 - Prob. 16APACh. 25 - Prob. 17APACh. 25 - Prob. 18APACh. 25 - Prob. 19APACh. 25 - Prob. 20APACh. 25 - Prob. 21APACh. 25 - Prob. 22APACh. 25 - Prob. 23APACh. 25 - Prob. 24APACh. 25 - Prob. 25APACh. 25 - Prob. 26APACh. 25 - Prob. 27APA
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Similar questions
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- Q1 “Digital banking makes life easier for consumers, digitalization has change the face of banking, People are increasingly enjoying the simplicity of managing all their finances in one place, setting up automatic payments or making deposits, anytime and anywhere, without the need to queue in a bank. Artificial Intelligence and Machine learning are the buzz words nowadays in banking”. Discuss and also throw light on recent trends in banking?arrow_forwardCase Study // BANKING IN A GLOBAL WORLD: HOW DO LARGE BANKS MAKE MONEY? Bank of America Bank of America borrowed $80,000,000 at 5% interest for 180 days from a Japanese investment house. At the same time, the bank made the following three loans, each for the exact same 180-day period: 1. A 7% simple interest note for $38,000,000 to a Canadian firm that extracts oil from Canadian tar sands; 2. An 8.2% simple discount note for $27,500,000 to a European contractor building a factory in South Africa; and 3. An 8% simple discount note for $14,500,000 to a Louisiana company building minesweep- ers in New Orleans for the British government. (a) Find the difference between interest received and interest paid by the bank on these funds. (а) (b) The bank did not loan out all $80,000,000. Find the amount it actually loaned out. (b) (c) Find the effective rate of interest to the nearest hundredth of a percent. (c) This seems like a low rate. However, Bank of America did this using funds borrowed…arrow_forwardDescribe how a bank would characterize loans and bank deposits on its balance sheet. Compare that to how you would characterize the same on your personal balance sheet.arrow_forward
- Millennials Should Shop Around for Banks Banks are in business to make money for their shareholders, not to put the interests of customers first. This key fact should not be overlooked. Banks sell financial services and compete hard for business. They want to be seen as the friend of students and offer no-cost accounts. But banks are not equal. By shopping around, you can get the deal that's best for you. Source: The Globe and Mail, September 19, 2016 Explain how this news clip illustrates the attempts by banks to maximize profits. This news clip illustrates the attempts by banks to maximize profits by A. selling financial services O B. operating in a highly competitive market OC. creating no-cost accounts for students O D. putting their shareholders ahead of their customersarrow_forwardIn 2014, the net worth of a bank was $750$750 billion, and the value of customers' deposits was $300$300 billion. In 2019, the net worth of the bank increased by $175$175 billion, and the value of savings accounts increased by $270$270 billion.Calculate the difference in the bank's total assets between 2014 and 2019.arrow_forwardIdentify the relationship between money, credit and financial institutionsarrow_forward
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