- Go to the website for the Federal Reserve Economic Data (FRED). Download the graphs for the Number of banks in the Federal Reserve Chicago District, and the Return on Average Assets for Banks in the Chicago District; both for the last 5 year period.
- Briefly (in about one page max) describe the causes of the Great Depression, the timeline of the crisis, and the steps taken by the Federal Government and the Federal Reserve in the aftermath of the Great Depression.
- Briefly explain the following pieces of legislation and its impact on the Financial Sector and consumers. (max 1⁄2 page each)
- Glass Steagall Act as well as its repeal
- McFadden Act as well as its repeal
- Dodd Frank Act.
- If a bank has $200,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $80,000 in reserves, then what is the maximum deposit outflow it can sustain without altering its balance sheet ? (5 points)
- Your bank has the following balance sheet:
AssetsLiabilitiesReserves $ 50 millionCheckable deposits $200 millionSecurities 50 millionBank capital 50 millionLoans 150 million- If the required reserve ratio is 10%, what possible actions can the bank manager take if there is an unexpected deposit outflow of $50 million?
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