Question: 2.2 What is the difference between a bank's return on assets (ROA) and its return on equity (ROE)? How are ROA and ROE related? 2.3

2.2 What is the difference between a bank's return on assets (ROA) and its return on equity (ROE)? How are ROA and ROE related? 2.3 What does it mean to describe a bank as \"highly leveraged\"? Why might the managers of a bank want the bank to be highly leveraged? Why might the bank's shareholders want the bank to be less highly leveraged? 3.1 Discuss the steps banks take to manage liquidity risk, credit risk, and interest-rate risk. 3.2 What is a credit report? What is a credit score? 3.3 What is the difference between gap analysis and duration analysis? What is the purpose of gap analysis, and what is the purpose of duration analysis? 4.1 Why is the United States said to have a dual banking system? 4.2 Why was the FDIC established? 4.3 Why did nationwide banking come relatively late to the United States compared with other countries? 4.4 List four off-balance-sheet activities and briefly explain what they are. 4.5 What are the key developments in electronic banking? 4.6 When and why was TARP created? Did the federal government lose money from TARP? Briefly explain

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