Banking began as a mostly private (non-government) industry and, over time, the government's role became primarily one of regulation (e.g., setting reserve requirements) and providing support for private banks (e.g., central banks lending banks money to pay deposits). Is this balance of responsibilities good? Should the government be less involved in banking, or should the government expand its role in banking by taking deposits from and making loans directly to individuals and businesses (like most banks do today).

Banking began as a mostly private (non-government) industry and, over time, the government's role became primarily one of regulation (e.g., setting reserve requirements) and providing support for private banks (e.g., central banks lending banks money to pay deposits). Is this balance of responsibilities good? Should the government be less involved in banking, or should the government expand its role in banking by taking deposits from and making loans directly to individuals and businesses (like most banks do today).

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter14: Money And The Federal Reserve System

Section: Chapter Questions

Problem 15SQ

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