Principles of Economics

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Principles of Economics


Chapter 14 Money, Banks, and The Federal Reserve System

Please answer the following questions and submit it to me next class for an extra credit (2 points)




  1. What is a commercial bank? How do they act?





  1. What is an investment bank? How do they act?






  1. What is a Ponzi Scheme?






  1. What is a security? Name 2 or 3 different type of securities?






  1. What is a securitization?






  1. What is “Shadow Banking System”? How did it happen? Who named it?












  1. What is a hedge fund?





  1. What is a CDO? What is their role in the new financial system?





  1. What was Glass-Steagall Act?






  1. What is Gramm-Leach-Bliley Act?







  1. Explain the cause s of the financial crisis in 2007-2009?  Please discuss if you agree on deregulation during these years? Discuss if you believe regulation or deregulation in the financial system. (You san use the back page).