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1. What is monetary policy? 2. Suppose  the  Fed  purchases $500  million  in  government  securities  from  a  primary dealer.  What will happen to the level of legal reserves in the banking  system

1.

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What is monetary policy?

2.

Suppose  the  Fed 

purchases

$500  million  in  government  securities  from  a 

primary dealer.  What will happen to the level of legal reserves in the banking 

system and by how much will they change?

3.

How  would  you  describe  the  size  distribution  of  American  banks  and  the 

concentration of i

ndustry assets in the U.S.?

4.

What is a bank holding company?

5.

What did the Riegle-Neal Interstate Banking Act do?  Why was it passed into 

law?

6.

Why is the creation (chartering) of new banks closely regulated?  What about 

nonbank financial firms?

7.

Who charters new banks in the U.S.?

8.

What  are  the  advantages  of  having  a  national  bank  charter?    A  state  bank charter?