Question
Hi! I am confused as how to I can solve this on FRED database, please help. the link is: https://fred.stlouisfed.org/ Go to the St. Louis
Hi! I am confused as how to I can solve this on FRED database, please help.
the link is: https://fred.stlouisfed.org/
Go to the St. Louis Federal Reserve FRED database, and find data on assets less liabilities, i.e. bank capital (RALACBM027SBOG), and total assets of commercial banks(TLAACBM027SBOG). Starting in January 1995 until the most recent period:
1)calculatethe bank leverage ratio and form a linegraph of the leverage ratiothis sample (include the graph you created with your submission).
2)Given the path of bank leverage over time, what can you conclude about moral hazardin the banking system over the time period considered?
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