Assignment

1. Why was the United States one of the last major industrialized countries to have a central bank?

2. What were the motivations for the original Glass-Steagall Act of 1933?

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

4. "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.

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

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

7. "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.

8. Why is loophole mining so prevalent in the banking industry in the United States?

9."The commercial banking industry in Canada is less competitive than the commercial banking industry in the U.S. because in Canada only a few large banks dominate the industry, while in the U.S. there are around 5,700 commercial banks." Is this statement true, false, or uncertain? Explain your answer.