Answer the following questions.
Question 1) Write and describe the three functions of money.
Question 2) Sate the money supply, M1 and near monies, M2, and M3.
Question 3) Write down three reasons why currency and checkable deposits are money and why they have value.
Question 4) Write down two types of demand for money and the major determinant of each.
Question 5) Explain the relationship between GDP and interest rate and each type of money demand.
Question 6) Describe what you mean by equilibrium in the money market and equilibrium rate of interest.
Question 7) Describe the relationship between bond prices and the money market.
Question 8) Describe the structure of the U.S. banking system.
Question 9) Describe why Federal Reserve Banks are central, quasi public, and bankers’ banks.
Question 10) Explain seven functions of Federal Reserve System and show which role is the most significant.
Question 11) Explain and evaluate the arguments for and against the Federal Reserve System remaining an independent institution.
Question 12) Explain the conditions which have caused loss of market share of banks and thrifts to pension funds, insurance companies, mutual funds, and securities-related firms.
Question 13) Write three main changes continuing to occur in financial services industry.