Unit 1 Article Summary:Write a review of the article by Todd Keister and James McAndrews, "Why Are Banks Holding So Many Excess Reserves?" Federal Reserve Bank of New YorkCurrent Issues in Economics and Finance15, no. 8 (December 2009), available at

In your own words, explain the key points that the author was trying to communicate. Your review should be at least one page not counting the title or reference pages

2 questions:

1. Consider the prevailing conditions for the following factors: inflation (including oil prices), the economy, the budget deficit, and the Fed's monetary policy that could affect interest rates. Based on prevailing conditions, do you think interest rates will likely increase or decrease during the next 6 months? Please discuss the impact of each of the factors on your opinion. Offer some logic or current reference(s) to support your answer. Which factor do you think will have the biggest impact on interest rates?

2. Consider how economic conditions affect the default risk premium. Do you think the default risk premium will likely increase or decrease during the next 6 months? How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

Your professionally written postings should provide substantive depth that advances the discussion.