(One paragraph will suffice unless otherwise indicated)

#1: How did the Sarbane- Oxlley Act of 2002 try to ensure that (bank) auditors did their job?

#2: According to your text: Which are the top three items listed as Assets of US Commercial Banks in USD, and what (dollar amount) is their sizes?

#3: What is a required reserve ratio and why do some feel it is not necessary?

#4 Explain the equation used for basic gap analysis.

#5 What is credit risk and how do bankers manage it?

#6 What was the primary reason the original Federal Reserve (USA) was established?

#7 What is the Monetary Base and why is it important to commerce?

#8 Explain (by numerical example) an open market operation where the FED is trying to expand the money supply.

#9 Why is the required reserve ratio important to the FED when open market operations are performed?

#10 Why is the M2 multiplier typically higher than the M1 multiplier?