Submit your downloaded graphs and answers to the following questions:

1. Financial intermediaries connect savers and borrowers. Examine growth in intermediation from the following perspectives.

a. Total credit market debt is the sum of debt securities (FRED code: ASTDSL) and loans (FRED code: ASTLL). Plot the ratio of total credit market debt owed to population (FRED code: POP). Interpret the plot. Hint: Because credit market debt is expressed in millions and population in thousands, multiply credit market debt by 1,000 to correct for the difference in units.

b. Plot the ratio of total credit market debt to nominal GDP (FRED code: GDP). Interpret the plot.

c. the ratio to nominal GDP of the value added by financial corporate business (FRED code: A454RC1Q027SBEA). Multiply the ratio by 100 to express it in percent. Interpret the plot since 2005.