FNU Impact of The Bank Mergers on The Structure of American Banking Research

You will be answering questions related to the Financial System and Money Supply, Interest Rates, Trade Balance and Foreign Exchange Rates. Each of the questions must have at least a half of page of writing (150 words). In addition your answers must prescribe to APA format.. You must submit a cover page, each question in a page by itself, and your references page must be also in a page by itself. And, please do not forget to reference your in-text.

Answer the following questions:

– Discuss the impact of the bank mergers on the structure of American banking. Why do banks merge?

– What is the federal funds market? How does it help banks strike a balance between liquidity and profitability?

– Why has the Federal Reserve chosen to focus on the federal funds rate rather than some other interest rate as a tool of monetary policy?

– What is the difference between a depreciation of the dollar and a devaluation of the dollar?

– Explain why a U. S. recession that occurs as the rest of the world is expanding will tend to reduce the U. S. Trade deficit.