Give two reasons that support the independence of the Federal Reserve Bank and two reason against such independence.
two reason that support independence of the Fedral Reserve Bank
1.independent Fed addresses well long term economic objective as it is easier to make policies for public interest.
2. independent Fed is free from political pressure that if Fed is not independent any election focused politician into enacting an expansionery monetary policy which lead to increase in unemployment in short term.
two reason against independence of the Fedral reserve bank
1. in against theuy said that it is fundamentally unconstituional.
2. thy also suggest that it is undemocratic to have an unelected agency,unaccountable to the US public, agency will dictate monetary policy.
Give two reasons that support the independence of the Federal Reserve Bank and two reason against...
11 The Federal Reserve Bank was created in 1913. The Federal Reserve Bank was put in charge of U.S. monetary policy. They are responsible to regulate banks, manage the money supply, and influence the direction of interest rates, 8 02:13:42 True or False Skipped False True
If a bank or brokerage house gave the Federal Reserve Bank $25 million in U.S. government bonds as collateral, then the Federal Reserve Bank could give them a short-term loan based on this collateral. This is known as a "reverse repo." True or False True False
David Wheelock of the Federal Reserve Bank of St. Louis describes the following episode at the beginning of the Great Depression: Following the stock market crash[of October 1929], the Federal Reserve Bank of New York used open market purchases [of Treasury securities] and liberal discount window lending [to commercialbanks] to inject reserves into the banking system. . . . The Federal Reserve Board reluctantly approved the New York Fed's actions ex post, but many members expressed displeasure that the New...
. Compare the structure and independence of the European System of Central Banks and the Federal Reserve System.
QUESTION 20 One reason the Federal Reserve System was set up in 12 regional Federal Reserve banks was to _ maximize the prestige of the FRD of NY make sure all regions of the country were represented in monetary policy deliberations o insure more influence was given to New York and Dallas help make the FOMC more effective QUESTION 21 The twelve Federal Reserve banks advise on the ___ discount rate Reserve Reequirements Open Market Operations printing of currency
When Bank A borrows federal funds from Bank B, the Federal Reserve bank increases one of the banks' accounts on the asset side of the Fed's balance sheet. b) Bank A posts an increase in its asset account, federal funds sold. c) Bank B posts an increase in its asset account, federal funds sold. the Federal Reserve bank increases the deposit account of both Bank A and Bank B. 24) Which of the following is not one of the five...
We have been discussing the structure of and tools used by the Federal Reserve Bank (Fed). If it were up to you, what directions would you give to the Fed regarding policy goals and targets. Would you change the current Fed?; Leave it alone?; Close it?... Support your opinion within an economic framework.
C. Federal Reserve Banks following does NOT create independence between the Fed and the US 3. Which of the following does NOT create independence government? A. Fed is not audited B. 14 year term limits C. Fed gives back profits to US Treasury. 1. 00% 5.00%
In March 2020, the European Central Bank, the Bank of Canada, and the Federal Reserve (and other central banks) began to consider measures to address the economic consequences of the Covid-19 virus. These measures might include A. buying government securities, increasing the bank rate, and relaxing regulations on bank loan and reserve requirements B. selling government securities, increasing the bank rate, and relaxing regulations on bank loan and reserve requirements C. buying government securities, decreasing the bank rate, and relaxing...
If the Federal Reserve adjusts reserve requirements this will affect total bank deposits with a: (A) Negative effect (B) Neutral effect (C) Multiplier effect (D) Regressive effect