Financial Markets and Institutions (2-downloads)

1. Why was the United States one of the last of the major

industrialized countries to have a central bank?

2. Which regulatory agency has the primary responsibil-

ity for supervising the following categories of com-

mercial banks?

a. National banks

b. Bank holding companies

c. Non-Federal Reserve member state banks

d. Federal Reserve member state banks

3. “The commercial banking industry in Canada is less

competitive than the commercial banking industry

in the United States because in Canada only a few

large banks dominate the industry, while in the

United States there are around 7,500 commercial

banks.” Is this statement true, false, or uncertain?

Explain your answer.

4. Why did new technology made it harder to enforce

limitations on bank branching?

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Part 6 The Financial Institutions Industry

W E B   E X E R C I S E S

Commercial Banking Industry: Structure and

Competition