1) In current years Carson Company has requested services listed below from Blazo Financial, a financial conglomerate. These transactions have created the flow of funds between Carson company and Blazo.

A) Categorize each service according to how Blazo benefits from services.-Advising on possible targets that Carson may obtain,

i) Futures contract transactions
ii) options contract transactions
iii) Interest rate derivative transactions
iv) Loans
v) Line of Credit
vi) Purchase of short-term CD's
vii) checking account

B) Describe why Blazo's performance from giving these services to Carson Company and other firms will refuse if economic growth is reduced.

C) Given potential impact of slow economic growth on the bank's performance, do you believe that commercial banks would favour that the Fed use a tight-money policy or a loose-money policy?