Briefly discuss the inherent risks in the fractional reserves banking system.Explain the differences between solvency and liquidity crises.Finally, explain how a lender of last resort can act on these types of crises, and discuss which risk can be generated by the presence of the lender of last resort.

explaining the concepts of Brokerage and Qualitative Asset .Make sure to highlight how such activities can help the financial intermediary s clients and what are the risks involved in engaging at it for the financial intermediary.Briefly discuss how the financial intermediary can charge for these services and what can influence the amount he can charge for it.

In which situation would a firm engage in risk shifting?Why would that be a serious issue for financial intermediaries?What can be done by a regulator to prevent a financial intermediary to engage in risk shifting (or at least reduce the degree)