Using this website: https://fred.stlouisfed.org/
Class: Money and Banking
I need help in understand whether I did right and some of the parts are confusing. I followed the instructions as shown in the word doc.
FRED Questions Number of U.S. Commercial Banks FRED code: USNUM Volume of deposits of U.S. Commercial Banks FRED code: DPSACBM027SBOG Deposits of Suspended Banks Fred code: M09039USM144NNBR 1. For this problem the graph you create will have 2 vertical axes, one on the left and one on the right. You can create two axes by going to edit graph. In edit graph under format, you'll see "Y-axis position." a. Produce a graph showing the number of U.S. commercial banks on the left scale and the volume of their deposits on the right-side scale. Start the graph in 1984 and continue through to the latest available data. Present the data on a quarterly basis FRED - Commercial Banks in the U.S. (left) - Deposits, All Commercial Banks (right) 15,000 16,500 14,00 15,000 13,000 13.580 12 000 12 000 11.000 10.580 10,000 91000 Number 9.000 7 500 8.000 6.000 7.000 4.500 6,000 3,000 5,000 1.505 4,000 1905 1890 1995 2000 2005 2010 2015 2020 U.S. recessions are shaded; the most recent end date is undecided. Sources: FFIEC; St. Louis Fed; Board of Governors fred stlouisfed.org b. What was the average deposit size of banks in the third quarter of 1984? What was the average deposit size in the third quarter of 2016? Numbers are given from the chart above 1984: left14,389/ right 1,565.1673 2016: left 5,141 / right 11.344.2297 *c. Why is it likely that the typical commercial bank in 2016 had a deposit size less than the average you computed in part b?2. a. When banks failed in the 1929-1933 period, the lack of deposit insurance meant that depositors experienced sizable losses. For September 1929 through February 1933, plot the deposits in suspended banks. FRED - Deposits of Suspended Banks, All Banks-Members and Non-Members of the Federal Reserve System for United States 500 400 Millions of Dollars 200 190 Jan 1830 May 1930 Sep 1930 Jan 1831 May 1931 Sep 1804 Jan 1912 May 1932 Sep 1932 Jan 1903 U.S. recessions are shaded; the most recent end date is undecided Source: National Bureau of Economic Research fred stlouisfed.org b. Find the total amount of deposits lost to bank failures in 1931. Stuck between two different numbers 140.85 million - 0.14085 billion 1690.22 billion c. Using this total, compute its ratio to 1931 gross national product of $77.4 billion. Stuck between two different numbers 1690.22/77.4 = 1:45.7929 billion 0.14085 /77.4 = 0.00182 billion d. Using that ratio, how large would the losses be compared to first-quarter 2016 nominal GDP of $18.3 trillion. 399.6252
