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...Chapter outline the function of a financial system money and supply intermediation transformation distribution risk stabilization inflation savings mobilization episodes forced as stimulus to investment interest rates saving decisions development shallow finance deep strategy panic moral hazard collapse informal credit markets monetary policy price stability exchange rate regimes sources controlling through reserve requirements ceilings regulation suasion introduction deals with all measures intended affect growth efficiency use diversified meet it objective is also called there are basic functions medium store value moblize from various channel transfers distributes across economies serves instruments transfer deposits checking demand time m narrow c d broad includes t broadest liabilites specialized institutions summary o concepts macro ratio assets gdp measure by flow funds accounts or liquid asset perfectly working will reduce exception disasters control recession prevent severe de...