Question:
After the training session on monetary policy and its ability to influence the money supply, you decide to focus on the other key role of the Fed, which is regulating the nation's banks. In particular, you want to focus on regulation in the context of impacting the money supply. Given the relative lack of media coverage on regulation (relative to monetary policy), you decide to focus much of the section on providing this education for the media.
Discuss why financial institutions are heavily regulated, with specific focus being paid to their ability to increase or reduce the money supply.