In what way are the 12 Federal Reserve Banks considered “quasi-banks”?
What will be an ideal response?
They are quasi-public because they blend private ownership with public control. The 12 Federal Reserve Banks are owned by private commercial bank members in their region. These private banks are required to purchase stock in the Federal Reserve Bank in their district. The policies of the 12 Federal Reserve Banks are set by the Board of Governors, which is a government-appointed body. The U.S. Congress also established the Federal Reserve System and its 12 banks. The 12 Federal Reserve Banks do not operate to make a profit as do private banks, but rather primarily serve to control the money supply.
You might also like to view...
The concept of "the invisible hand" suggests that
A) products are produced out of a seller's sense of charity. B) when the seller is better off, the buyer is worse off. C) sellers exploit consumers with high prices. D) buyers and sellers are self-interested. E) the command system is the only way of efficiently allocating resources.
Price elasticity of demand is a units-free measure
Indicate whether the statement is true or false
Beth, an American citizen, travels to Italy on vacation and buys an espresso machine to bring home. Her purchase increases a. Italy's GDP
b. Italy's GDP and U.S. GDP, since Beth spent dollars buying the machine. c. U.S. GDP since she will have the machine with her at home in the U.S. d. Neither U.S. nor Italy's GDP, since the product was bought in one country and used in another.
According to the Federal Trade Commission and Department of Justice HHI Rules, how concentrated is this market?
a. Not concentrated. b. Moderately concentrated. c. Concentrated. d. Highly concentrated.