Questions from Financial Markets


Q: Do you think that eliminating or limiting the amount of deposit insurance

Do you think that eliminating or limiting the amount of deposit insurance would be a good idea? Explain your answer.

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Q: Do you think that removing the impediments to a nationwide banking system

Do you think that removing the impediments to a nationwide banking system will be beneficial to the economy? Explain.

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Q: Why does imposing bank capital requirements on banks help limit risk taking

Why does imposing bank capital requirements on banks help limit risk taking?

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Q: Why have banks been losing income advantages on their assets in recent

Why have banks been losing income advantages on their assets in recent years?

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Q: Consider a coupon bond that has a $1,000 par

Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has eight years to maturity. What is the bond’s yield to maturity?

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Q: “The invention of the computer is the major factor behind the

“The invention of the computer is the major factor behind the decline of the banking industry.” Is this statement true, false, or uncertain? Explain your answer.

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Q: How did competitive forces lead to the repeal of the Glass-

How did competitive forces lead to the repeal of the Glass-Steagall Act’s separation of the banking and the securities industries?

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Q: Why have banks been losing cost advantages in acquiring funds in recent

Why have banks been losing cost advantages in acquiring funds in recent years?

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Q: “If inflation had not risen in the 1960s and 1970s,

“If inflation had not risen in the 1960s and 1970s, the banking industry might be healthier today.” Is this statement true, false, or uncertain? Explain your answer.

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Q: Why has there been such a dramatic increase in bank holding companies

Why has there been such a dramatic increase in bank holding companies?

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