1. Go to the FDIC web site and read about market-linked (aka index-linked) CDs.How do these CDs differ from conventional bank-issued CDs? Identify and explain what you feel are the three most important pitfalls confronting investors in market-linked CDs.
2. Explain and illustrate with a diagram the concept of a financial holding company (FHC). What are the advantages and disadvantages of the FHC structure?