6.At a commercial bank, customer deposit accounts have a high degree of liquidity and low risk to the customer. These deposit accounts fund illiquid bank assets with higher risk. Commercial banks are able to do this because of both ______________________ and ________________________.

A.Free riders; Regulation

B.Primary markets; Foreign exchange markets

C.Price risk; Collateral

D.Diversification; High equity returns

E.Monitoring; Diversification

7.Implementation of Monetary Policy is the responsibility of:

A.Private Industry

B.The FDIC

C.The Federal Reserve

D.The Office of the Comptroller of the Currency

E.U.S. Congress