discuss what a moral hazard in commercial banking is and how these can be mitigated, economics homework help

1. Please discuss what a moral hazard in commercialbanking is and how these can be mitigated to (hopefully) prevent furtherfinancial crisis.2. Please describe what financial and economicfunction banks preform (AKA: what is ‘it’ that banks do). Why are thesefunctions important?3. Chapter 10 addresses innovation and creativityin banking. Please describe how and why the inflation of the 1970’s and 1980’scoupled with deregulation ushered in an era of financial innovation.4. What are the practical limits of bankregulations, or why is it impossible to fix all financial sector issues withmore regulations?5. Financial crisis have occupied a great deal ofour attention this past decade. Please provide a definition of a financialcrisis, give an example of one and then your recommendation on how such aproblem could have been prevented.6. In order to be effective and successful it isthought to be best practice that Central Banks be independent from direct governmentalaction and influence. Do you believe this is a good approach why or why not?What would you do today to address issues that impact the US Federal Reserve System?