1. List two services that FI's provide to the public. Why do intermediaries provide these services? What is a contingent financial claim? give two examples.
2. How are FI's like other firms? How are FI's similar to each other? How are they different?
3. What is a depository institution? What are the main types of depository institutions? What distinguishes them from other intermediaries?
4. Why do banks hold reserve assets?
5. John, a recent College graduate, is buying his first house. From which FI's could he obtain a mortagage loan?