Discuss how banks and credit markets work within our financial system today to create money, provide credit, and source “safe assets” for investors.

Please answer these questions in essay format. Answers should be approx. 1 page per question. (3 pages total).
1. Discuss how banks and credit markets work within our financial system today to create money, provide credit, and source “safe assets” for investors.
2. What role does the Federal Reserve play our financial system, and how does it interact with both banks and credit markets to pursue its policy goals?3. What role does regulation play, and do you have any concerns about how banks and/or credit markets are currently regulated?Bonus: How do cryptocurrencies fit into this system (if at all) today; do you think they are a relevant thing to understand?7901818 minutes agoPlease use the provided textbook pdf and incorporate quotes and citations from the same. Outside sources may also be referenced in combination with material from the textbook.