1. Explain how the bank panics of 1930 to 1933 produced a decline in the nation's money supply. Why are such panics highly unlikely today?
2. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES The Federal Reserve, at www. federalreserve.gov/releases/h8/Current, provides an aggregate balance sheet for commercial banks in the United States. Check the current release, and look in the asset column for "Loans and leases." Rank the following components of loans and leases in terms of size: commercial and industrial, real estate, consumer, security, and other. Over the past 12 months, which component has increased by the largest percentage? By the largest absolute amount? Has the net worth (assets less liabilities) of all commercial banks in the United States increased, decreased, or remained constant during the past year?