Reference no: EM133079634

1. Assume a US bank has a small portfolio of Japanese yen what sort of exchange  rate movement would the bank be most concerned about?

2. What are the primary responsibilities of the Federal Open Market Committee?

3. Of the major tools of monetary policy which is used most often and why?

4. What is a primary risk of trading with Fed Funds? How was this risk in play during the crisis of 2008 - 2009?

5. What are the major sources and uses of funds for US commercial banks? Where do these appear on the balance sheets of commercial banks and of what significance are they?

6. Think about the principal assets of commercial banks, what are these? What does this asset structure inform us about the risk impacting a commercial bank?

7. What does a commercial banks' CAMELS rating of '2' imply? What if it were '4'?

8. What if a commercial banks asset utilization ratio were to increase, if other balance sheet items remain constant what, what will happen to return on equity (ROE)?

9. Commercial banks are subject to overlapping layers of regulation and authority, and what are the forms of protection and regulations that are imposed on CB's to ensure their customer safety and soundness?

10.In the US there is the phenomenon of shadow banking. What is this, how does it differ from traditional commercial banking and are there any special risks associated with its use?

11.Please describe some of the reasons for the saving and loan crisis of the 1980's? What does that episode tell us about the regulation of financial institutions in the 21st Century? Do you think that we, as a financial system, learned anything from this earlier crisis?

12.What is the relative size of the credit union industry to commercial banking and of what significance is this? What functions doe CU's perform which banks do not?