Verrae (1 point eacht: write answer in the blank to the left of the number. A fundamental function of a commercial bank is to take deposits and make loans. The Federal Government made money (in aggregate) on the bailout of the banks under the TARP program. When bond vields increase, bond prices fall. The largest Federal Reserve Bank is based in Washington DC The OCC sets up the regulatory rules for banks and the Federal Reserve enforces those regulations Investors face various costs including transaction costs and information costs: financial intermediaries help reduce these costs via economies of scale and specialization. Fiat money and commodity money are effectively the same thing Negative interest rates on government bonds used to be viewed as impossible but now have become more common. Banks in the USA have more capital (as a percentage of assets than they did in 2007. 8. 9