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What reforms to the financial system might reduce its exposure to systemic risk LO 1-6) Examine the balance sheet of commercial banks in Table 1.3 What is the ratio of real assets to total assets

  1. What reforms to the financial system might reduce its exposure to systemic risk? (LO 1-6)

  2. Examine the balance sheet of commercial banks in Table 1.3. What is the ratio of real assets to total assets? What is that ratio for nonfinancial firms (Table 1.4)? Why should this difference be expected? (LO 1-2)

  3. Why do financial assets show up as a component of household wealth, but not of national wealth? Why do financial assets still matter for the material well-being of an economy? (LO 1-2)

Jun 18 2020 View more View Less

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