The immediate impetus for the establishment of the Federal Reserve System came from

A. severe outbreaks of inflation in the early 1900s.
B. four severe banking panics between 1873 and 1907.
C. the discovery of gold in Alaska.
D. the desire to copy the founding of the Bank of England.


Answer: B

Economics

You might also like to view...

Coal is very useful in the production of electricity. Red beryl, although not generally considered as very useful, is a beautiful gemstone found in the mountains of Utah, and has been described as 1,000 times more valuable than gold

Explain why red beryl costs so much more than coal.

Economics

Which of the following best states the main criticism of the Sherman Act?

a. It was overly harsh. b. It was unnecessary at the time. c. It was too vague. d. It duplicated existing law. e. It came too late in the Industrial Revolution.

Economics

Newsgroup Markets

Visit one of the following newsgroups: (Newsgroups provide lists of messages on a particular topic. Google provides a searchable interface for these newsgroups.)

  • rec.antiques.marketplace
  • rec.audio.marketplace
  • rec.music.makers.marketplace

Questions:

  • Do participants in such lists receive gains from trade? How?
  • Does the existence of internet newsgroups such as these allow some individuals to gain from trade that might not otherwise occur? Explain.

Economics

Homer and Marge both enjoy lasagna and wine. Homer's utility function is given by U(L,W) = 12L + 4W. Marge's utility function is given by U(L,W) = 2L + 2W. In each function, L stands for plates of lasagna and W stands for glasses of wine. Would Homer and Marge agree to a trade in which Homer gives Marge a plate of lasagna in exchange for two glasses of wine?

What will be an ideal response?

Economics