Question
1a)Explain how a commercial bank acts as a financial intermediary by creating a claim on itself and matches up money from savers with needs of
1a)Explain how a commercial bank acts as a financial intermediary by creating a claim on itself and matches up money from savers with needs of borrowers b)Explain why a commercial bank is required by the Federal Reserve to keep reserves. It can be said that there are two reasons one is monetary control by the US government controlling the money supply and the other is safety. c) Explain how life insurance companies are a financial intermediary. d) Explain the difference between a positive yield curve, a negative yield curve and a flat yield curve as they relate to interest rates.
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