One way banks earn a profit is by

During the 1980s and 1990s, the number of domestically chartered commercial banks in the U.S.

Part IV: Bonus Section—match each of the following outcomes with the regulation responsible for it.

The popularity of money market mutual funds during the 1970s is best explained by

Banks have attempted to maintain adequate profit levels as interest margins declined by

Matching. Rewrite numbers 1-10 and put the letter for the legislation responsible for the regulatory action with it.Note: Some letters could be used more than once and some may not be used at all..A = Gramm-Leach-Bliley Financial Services Modernization ActB = Federal Deposit Insurance Reform ActC = Glass-Steagall ActD = Dodd-Frank Wall Street Reform and Consumer Protection ActE = National Banking ActF = Financial Institutions Reform, Recovery, and Enforcement ActG = Depository Institutions Deregulation and Monetary Control ActH = Riegle-Neal Interstate Banking and Branching Efficiency ActI = McFadden ActJ = Competitive Equality in Banking ActK = Garn-St. Germain (Depository Institutions Act) L = Federal Deposit Insurance Corporation Improvement ActM = Community Reinvestment ActN = Equal Credit Opportunity Act. ____1. Limited brokered deposits and too-big-to-fail ____2.  Created the system of national banks currently in use in the U.S. ____3.  Prohibited the practice of redlining ____4. Combined the commercial bank and savings and loan insurance funds ____5.  Separated commercial banking from other financial activities ____6.  Imposed uniform reserve requirements on depository institutions. ____7.  Created the FDIC ____8.  Created the Office of the Comptroller of the Currency ____9.  Implemented risk based premiums ____10.  Prohibited states from interfering with interstate banking

Which of the following things do commercial banks NOT do with the funds they acquire from savers?

3. Briefly explain 6 of the basic facts about financial structure your author describes in Chapter 8.

2. a) Explain the options discussed in class for banks to raise additional reserves (from lowest cost to highest cost).         b) Identify and explain the costs (explicit and implicit) associated with each option.

With respect to the last several decades, which of the following statements is true?