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.
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The income paid to labor is called
A) rent. B) profit. C) interest. D) human capital. E) wages.
Using the above figure, an increase in the demand for Dutch goods by U. S. consumers will lead to
A) a depreciation in the Dutch currency. B) an appreciation in the Dutch currency. C) an increase in the supply of Dutch currency as foreign exchange. D) a decrease in the supply of Dutch currency as foreign exchange.