Federal Reserve Banks; Cost Allocation The Monetary Control Act of 1980 www.federal reserve.gov/payment systems/pricing/pricingpol.htm) requires the Federal Reserve (FED) to charge explicitly for certain services, in effect placing Federal Reserve banks in direct competition with large commercial banks for these services. The act also requires the FED to price these services based on full cost, including allocated indirect costs. Recent research indicates that the FED responded to the act by both improving the efficiency with which it provides these services and reallocating indirect costs to the less price-competitive services.
Required Describe briefly how the allocation of indirect costs could have made the FED?s most pricesensitive services more competitive. Are there ethical or professional issues involved in this case?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.