What forms of protection and regulation do the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: externality? In what ways do the existence of negative externalities justify the extra regulatory attention received by financial institutions? 22. If financial markets operated perfectly and costlessly, would there be a need for financial intermediaries? 23. Why are FIs among the most regulated sectors in the world? When is the net regulatory burden positive? 24. What forms of protection and regulation do the regulators of FIs impose to ensure their safety and soundness? 25. In the transmission of monetary policy, what is the difference between inside money and outside money? How does the Federal Reserve Board try to control the amount of inside money? How can this regulatory position create a cost for depository financial institutions? 26. What are some examples of credit allocation regulation? How can this attempt to create social benefits create costs to a private institution? 27. What is the purpose of the Home Mortgage Disclosure Act? What are the social benefits desired from the legislation? How does the implementation of this legislation create a net regulatory burden on financial institu...
View Full Document

Ask a homework question - tutors are online