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)
- What is a commercial bank? How do they act?
- What is an investment bank? How do they act?
- What is a Ponzi Scheme?
- What is a security? Name 2 or 3 different type of securities?
- What is a securitization?
- What is “Shadow Banking System”? How did it happen? Who named it?
- What is a hedge fund?
- What is a CDO? What is their role in the new financial system?
- What was Glass-Steagall Act?
- What is Gramm-Leach-Bliley Act?
- 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).