Go to the web site of the Federal Reserve Bank of St. Louis (FRED) (fred.stlouisfed.org) and download and graph the data series for Banks (FREQ) from 1988 until the most recent quarter available. Go to the web site of the National Bureau of Economic Research (nber.org) and find the dates for business cycle peaks and troughs. (The period between a business cycle peak and trough is a recession.)
a. Describe the trend in the number of banks in the United States during these years. Briefly discuss the factors that account for this trend.
b. Do your data indicate a significant effect of recessions on the number of banks in the United States? Briefly explain.