Participation of banks in other businesses

Instructions
Most US banks are privately owned, profit-making organizations. Although they provide
a service just as many other businesses, banks differ because of their importance in
the macro economy. Policymakers have debated whether banks should be permitted
to only do “banking business”, or whether banks should be permitted to engage in other
lines of business such as selling insurance or buying and selling stocks and bonds. In
this week’s assignment you will address that premise through the following questions;
1. Provide a brief (one paragraph) overview of this week’s material.
2. What are the risks for the macro economy if a bank fails, that do not exist for other
businesses?
3. If banks could participate in other lines of business, what benefits would there be
for consumers?
3. Overall, discuss whether or not banks should be allowed to enter other lines of
business. Provide support for position from course and/or outside materials.
Your final product will be a paper that:
 Addresses each of the topic/questions above in total.
 Is APA fortatted.
 The body is to be 2 pages minimum.
The requirements for your assignment are:
1. Answer each question fully
2. Define the overall subject of each question.
3. Cite at least three (3) resources from this week’s materials.
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