How can changes in the central bank loan (discount) rate and reserve requirements affect the operations of depository institutions? What happens to the legal reserves of the banking system when the Fed grants loans through the discount window? How about when these loans are repaid? What are the effects of an increase in reserve requirements?
Answer to relevant QuestionsHow did the Federal Reserve change the policy and practice of the discount window recently? Why was this change made?What is the principal job performed by the FDIC?See if you can develop a good case for and against the regulation of financial institutions in the following areas:A. Restrictions on the number of new financial-service institutions allowed to enter the industry each ...Describe the typical organization of a smaller community bank and a larger money-center bank. What does each major division or administrative unit within the organization do?What relationship appears to exist between bank size, efficiency, and operating costs per unit of service produced and delivered? How about among nonbank financial-service providers?
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