Answer the following problems.
problem 1) prepare and describe the three functions of money.
problem 2) Sate the money supply, M1 and near monies, M2, and M3.
problem 3) prepare down three reasons why currency and checkable deposits are money and why they have value.
problem 4) prepare down two types of demand for money and the major determinant of each.
problem 5) describe the relationship between GDP and interest rate and each type of money demand.
problem 6) Describe what you mean by equilibrium in the money market and equilibrium rate of interest.
problem 7) Describe the relationship between bond prices and the money market.
problem 8) Describe the structure of the U.S. banking system.
problem 9) Describe why Federal Reserve Banks are central, quasi public, and bankers’ banks.
problem 10) describe seven functions of Federal Reserve System and show which role is the most significant.
problem 11) describe and evaluate the arguments for and against the Federal Reserve System remaining an independent institution.
problem 12) describe the conditions which have caused loss of market share of banks and thrifts to pension funds, insurance companies, mutual funds, and securities-related firms.
problem 13) prepare three main changes continuing to occur in financial services industry.