What are the three major characteristics of the twelve Federal Reserve Banks?
What will be an ideal response?
They act together as the central bank of the United States. They are quasi-public in that they are owned by private commercial bank members, but are controlled by the government since the system was established by an act of Congress. Finally, they are bankers’ banks because they perform essentially the same functions for depository institutions that those institutions perform for their customers. That is, the Federal Reserve Banks make loans to financial institutions, keep their reserve deposits, and provide them with paper money.
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European banks began with
A. Monarchs were the first bankers, lending out cash to help the poor learn a craft.
B. Churches were the first bankers, lending out cash to help the poor learn a craft.
C. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money.
D. Fishermen were the first bankers, and the paper receipts they issued for fish they stored in the hulls of their ships became valued as money.
The government strives to operate at neither a deficit nor surplus budget in order to keep the federal budget
A) balanced. B) in line with the stock market. C) equal to that of other countries. D) equal to inflation.
It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1500 . The firm has experienced
a. Economies of Scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
Virtual currencies are threats to a nation's economy if they endanger the country's:
a. Price and financial stability. b. Payment system. c. End users. d. All of the above