Why are there only two US banks among the ten largest banks in the world? | Homework.Study.com (2024)

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• Why do banks merge?
• Why do banks/firms merge?
• Why is the U.S. banking system unique in the world?
• Why are banks important?
• Why does the United States operate under a dual banking system?
• Why do regional banks still exist?
• Explain why banks engage in financial engineering.
• Explain the reason banks cannot lend out all their reserves.
• Why do you think we no longer see many bank runs today?
• Why do commercial banks tend to lobby for and welcome a central bank?
• A) Why is the US banking system known as a dual banking system? B) What historical developments led to that structure? C) How is the structure justified today?
• Should commercial banks be allowed to enter investment banking? Why or why not?
• Why can't the President of the USA allow the big banks to fail?
• Why are banks considered Intermediaries?
• Why do we call a bank a financial intermediary?
• Explain the reason why the bank lending channel is less effective than it once was.
• Explain the three reasons why Canadian banks fared better than banks in other countries during the global financial crisis of 2007-2009
• Why are banks one of the most regulated and examined industries in the United States?
• Briefly explain one of the risks banks face. Why is this risk significant for banks?
• Why do we say that when a bank makes a loan it is creating money?
• Why do banks face liquidity risk?
• Why were interest rates for savings accounts at US banks so high (2-3%), compared to today's rates of .01%?
• Why can't Indian government pay world bank loan by just printing money?
• Why shouldn't the Central Bank aim for zero inflation?
• Why the number of bank holding companies have increased dramatically?
• What are the reasons for separating banking from other financial services through legislation?
• Why are regulations so stringent, especially for new banks? One paragraph will suffice for your answer.
• Why are the institutions that govern monetary policy and fiscal policy different? Why does the central government not take up the responsibilities of a country's central bank?
• Why was the Federal Reserve System created?
• Explain the main cause of bank runs.
• Why are banks regulated? The free market always maximizes welfare.
• (a) Please provide a description of bank runs. (b) Explain the main cause of bank runs. (c) Why do you think we no longer see many bank runs today?
• Explain how and why profitability ratios at small banks typically differ from those at the largest money center banks.
• Explain why someone might not agree concerning the current system of modern banking.
• Why can't the Federal Reserve control the money supply perfectly?
• Why might a banking crisis lead to a fall in the money supply?
• Explain how bank failures come about?
• Why does our country need the monetary policy of RBI?
• Explain the reason why banks have been losing income advantages on assets
• Discuss why a bank quite often demands that the organizations it lends have to continue compensating balances at the bank.
• Why are banks in a better position to make loans than would be a typical saver? Describe a bank's expertise in this area.
• Why might you first go to your local bank rather than a finance company if you needed to take out a loan?
• Why do banks pay higher interest rates for longer-term certificates of deposit?
• Why is a bank more likely to offer you credit if you have a co-signer with good credit?
• Why can't the Fed control the money supply perfectly?
• Why do people prefer putting their money in a bank and having the bank lend it to their neighbor rather than lending it directly to their neighbor?
• (a) Provide a description of bank runs. (b) Explain the main cause of bank runs. (c) Why do you think we no longer see many bank runs today.
• Explain why banks, which would seem to have a comparative advantage in gathering information, have not eliminated the need for money markets.
• Why are central banks so concerned with inflation expectations?
• Why have ATMs and online banking made savings accounts more liquid than they used to be?
• Why is the Federal Reserve System allowed to operate as a monopoly on government finances?
• Why do wealthy people invest in banks? Is it due to higher profits, or less risk?
• Why are governments the only ones that can generate currency?
• If the world is accurately described by the IS-LM model, is there any reason why the central bank should not lower interest rates to zero? Is there any reason why the central bank would not lower the
• Explain the factors that make international banking difficult.
• Why is it important for governments to regulate the money flow in an economy?
• Why does Federal Reserve System buy the USA s government bonds?
• Discuss why some banks choose to securitize their loans and how do they securitize it.
• Why was the World Bank set up? a. to preserve peace through international cooperation b. to promote economic development c. to maintain order in the international monetary system d. to formulate a coordinated policy response to financial crises
• To prevent prices from rising, why does the Central Bank sell bonds?
• Banks hold more liquid assets than most businesses do. Explain why.
• Why is it that the vast majority of people keep their money in large banks, those banks that pay no interest and were the worst offenders of needing to be bailed out, rather than in a community credit
• Why does EURUSD conversely go up while European Central Bank released loosening monetary policy?
• 1. What are the Goals of the World Bank and the IMF? 2. Why are some people upset and protesting about the World Bank and IMF?
• Why do banks increase the interest rate, when the rupee depreciates?
• Economics: Why does a bank holding excess reserves have an opportunity cost?
• Why don't nations just print money and supply it into the markets and why do they borrow from the IMF? Isn't it illogical to borrow on interest rates even though you yourself are underperforming?
• Why is the Fed so important in our economy?
• Why is there a need for organizations like Opportunity International? Can't poor people get loans from banks and other sources?
• Why can't the Fed target both the money supply and the interest rate at the same time?
• Why is the financial sector important to an economy?
• Why have banks been losing out on cost advantages in acquiring funds in recent years?
• Why is United States currency the dominant world currency?
• Why the Federal Reserve banks are scattered around the country, instead of having everything run by the Board of Governors in Washington, D.C.? What are the costs and benefits?
• Explain the reasons why the Fed can't control the money supply perfectly?
• Why does the Federal Reserve have a monopoly on the issuing of American currency?
• Explain why the Federal Reserve is independent.
• What are the two main reasons why the government regulates the financial system?
• Monetary Policy: Why can't we have competing currencies within a country?
• Why should interest rate parity (IRP) hold?
• Why do central banks use open market operations as opposed to (for instance) direct wage subsidies?
• Why do governments need to control the money supply in their markets?
• Why does the monetary system let markets work efficiently?
• Why does the government bailout failing monopoly companies and large banks?
• Why does the Federal Reserve artificially set interest rates? Wouldn't the market organically set interest rates?
• Why shouldn't money markets be outlawed?
• Explain how a chartered bank creates money.
• Why was the Federal Reserve System split into 12 Districts?
• Why do so few people control such a large share of the world's wealth?
• When the economy is in a recession, the Federal Reserve usually cuts interest rates. Why would they do this?
• Hyperinflations are extremely rare in countries whose central banks are independent of the rest of the government. Why might this be so?
• Have bank failures decreased since the crisis in 2008? Why or why not?
• Why is money now not the same as money later?
• When bank assets appreciate by 5% from $1000 to $1050, why does this increase bank capital from $50 to $100 and thus double owners' equity?
• Why are bond markets important?
• Why can't a country print its own currency when required?
• Why don't nations just print a lot of money to their treasuries and then pay their loans without letting money go into their domestic market?
• Why did US dollar flow as global trade currency?
• Assuming Glass-Steagall is strictly reinstated, and the FDIC is disbanded, why does the U.S. not allow banks and their customers to determine their own tolerable leverage ratios? Why impose artificial