there were no foreign

11. In 1969, there were no foreign issuers of federal funds and repurchase agreements (repos), negotiable certificates of deposit (NCDs), or commercial paper in the United States. In 1991, foreign banks represented 7.5 percent of outstanding fed funds and repos and 15.9 percent of NCDs outstanding. In the same year, foreign firms represented 15.5 percent of all commercial paper outstanding.
12. a. Negotiable CDs have made it possible for banks to more actively manage their liquidity. By raising interest rates to attract funds as needed, banks can more easily fund loan demand and meet other liquidity objectives.
b. Commercial banks have not experienced an expansion of loan demand in recent years because of general recessionary conditions in the United States. Also, there has been regulatory emphasis on building capital levels relative to assets, i.e., reducing debt levels.
13. [Question 13 requires students to refer to the Wall Street Journal]