financial institutions 6

These are some topics of discussion. Please write about these 7 questions one by one in detail. Use the Financial Institutions knowledge.

1.Understand the algebraic equation determining the amount of money that can be created in the banking system from a given amount of excess reserves.

2.Interest rate movements as they relate to stages of the economy.

3.Open market operations.

4.Money creation.

5.Reserve and Capital requirements for depository institutions.

6.Greatest fear of a depository institution and what transactions cause it.

7.Financial crisis of 2007-2008 and why some large financial institutions failed.