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Need help with this 1. Show the following on supply and demand curves for money under the liquidity w and describe what is happening a.

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Need help with this

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1. Show the following on supply and demand curves for money under the liquidity w and describe what is happening a. Incomes rise b. Prices rise c. The Federal Reserve increases the supply of money 2. The Bank of Barry starts out with the amount of reserves it wants keeping reserves at a level of 10% of deposits. Now, it experiences an increase in deposits of $10mn. a. By how much will the banks reserves change? b. By how much will its excess reserves change? c. What do you think the bank shouldjgto get its reserves back to the desired level and why? d. What else could the bank do to get its reserves back to the desired level and why didn't you choose those items? 3. For a bank with interest sensitive assets of $10mn and interest-sensitive liabilities of $40mn, what will happen to profits if interest rates rise by 2%? Give a # and explain show you got it? 4. Calculate the RCA, ROE, and equity multiplier for the following bank? Assets $100mn; liabilities $90mn; equity $10mn; net profits SSmn. 5. How do banks differ from other financial intermediaries? 6. How do hedge funds differ from mutual funds? 7. Describe what Fannie Mae and Freddie Mac do and what happened to them during the Great Recession? 8. Describe the changes that have taken place in the banking industry since 1990. 9. Describe the different chartering systems for banks and who regulates which banks. 10. What caused the 2007-2009 financial crisis

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