The Economics Of Money, Banking And Financial Markets Plus Pearson Mylab Economics With Pearson Etext, Global Edition
12th Edition
ISBN: 9781292268965
Author: Frederic S. Mishkin
Publisher: PEARSON
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Question
Chapter 13, Problem 1Q
To determine
The reason for making twelve regional Federal Reserve banks instead of one central bank.
Expert Solution & Answer
Explanation of Solution
There were mainly three reasons for twelve regional Federal Reserve Banks instead of one single with centralized powers. Firstly, twelve regional banks were established because of a long-standing convention of centralized power's distrust. It helped to maintain the balance in the constitution and preserve the rights of all individuals.
Secondly, after the two failures in the central bank system, there existed distrust in the minds of the people of Country A. To preserve people’s interest in every region, different regional banks were initiated.
Lastly, the operation by the federal banks would result in too much intervention by the central authorities. Therefore, a decentralized system was established so as to maintain equality of policy deliberations among all the regions in Country A.
Economics Concept Introduction
Introduction: Federal Reserve Bank is a financial institution that provides various banking services to all the individuals and organizations in Country US. It was established by Congress in the year 1913.
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Descriptive statistics provide details about the Y variable, based on the sample for the 10-year period. Here, you use Excell or manually compute
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Draw the Scatter plot and impose the trend line: showing the Y variable and explanatory variables ( X1).
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Chapter 13 Solutions
The Economics Of Money, Banking And Financial Markets Plus Pearson Mylab Economics With Pearson Etext, Global Edition
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - Prob. 16QCh. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 22QCh. 13 - Prob. 23QCh. 13 - Prob. 24QCh. 13 - Prob. 25QCh. 13 - Prob. 1DAPCh. 13 - Prob. 2DAPCh. 13 - Prob. 1WECh. 13 - Prob. 2WE
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