2. In what ways have changes in the investment banking industry mirrored changes in the commercial banking industry?

18. An investor notices that an ounce of gold is priced at $1,518 in London and $1,525 in New York.

a. What action could the investor take to try to profit from the price discrepancy?

b. Under which of the four trading activities would this action be classified?

c. If the investor is correct in identifying the discrepancy, what pattern should the two prices take in the short term?

d. What may be some impediments to the success of this transaction?

23. How do the operating activities, and thus the balance sheet structures, of securities firms differ from the operating activities of depository institutions?How are the balance sheet structures of securities firms similar to depository institutions?