Explain the relationship between reserve requirements and


1. “The invention of the computer is the major factor behind the decline of the banking industry”. True/False/Uncertain? Explain

2. Explain the relationship between reserve requirements and the size of money market mutual funds.

3. Explain how could a mutual fund take advantage of the economic concept of “economies of scale”.

4. The free-rider problem never arises in the debt market. True/False/Uncertain? Explain.

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Financial Management: Explain the relationship between reserve requirements and
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