1. Collect the annual report of a US commercial bank from 2006. Find the consolidated balance sheet and condense it into a form similar to Assets into the left and Liabilities into the right .

Answer the following questions:

a. What proportion of customer deposits does the bank hold with the central bank as reserves?

b. How much of the bank's loans are funded through customer deposits?

c. What is the bank's leverage?

2. Use central bank websites to collect data on monthly policy rates and mortgage rates in two developed economies between 2000 and 2012.

a. How do the banking mark-ups compare in the two countries?

b. Do the banking mark'ups change over time?

c. Use the chapter and the Appendix to discuss possible reasons for any differences observed

over time and between countries.