The reason why the United States was one of the last major industrialized countries to have a central bank Introduction: Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

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Answer 1

Question

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

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Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36 Q Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.

Answer 2

Question

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

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Answer 3

Question

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

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Answer 4

Question

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

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Answer 5

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

Answer 6

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

Answer 7

Chapter 11, Problem 1Q

To determine

The reason why the United States was one of the last major industrialized countries to have a central bank

Introduction:

Central bank works as an independent authority which helps to regulate monetary as well as fiscal policies in the economy. It is responsible to maintain the overall balance of all the macroeconomic variables in the economy.

Answer 8

Expert Solution & Answer

Explanation of Solution

United States is one of the developed nations and had the highest growth rate at a time which was impossible to achieve.

However, United States was one of the last major industrialized countries to have a central bank because of the agricultural and other interests that were quite doubtful and the fear of centralized power and hence, demanded state banks.

In addition, their distrust of the central banking led them to exert political pressure in order to eliminate the bank of the United States, and in 1811 they efforts met with progress and charter were not re-established. In light of misuse by state banks and the reasonable requirement for a national bank to enable the central government to raise reserves amid the war of 1812, Congress was invigorated to make the Second Bank of the United States in 1816.

Thus, until 1863, all commercial banks in the United States were chartered by the banking commission of the state in which each bank operated, no national currency existed and there was no establishment of a Central bank.

The National Bank Act of 1863 created a new banking system of federally chartered banks called National Banks in order to eliminate the abuses of state chartered banks called State banks and resulted in a dual banking system in the United States. Central bank did not reappear in this country until the Federal Reserve System was created in 1913 to promote an even safer banking system.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - Prob. 7Q Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - Prob. 10Q

Explanation of Solution

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