The twelve district banks of the Federal Reserve System were created to decentralize power and to respond to the public's fears of the monopoly power of a single central bank such as the Bank of England or the Bank of Japan

Explain the productivity curve and how the components interact

What will be an ideal response?

Suppose you deposit $2,000 into Bank of America and that the required reserve ratio is 10 percent. How does this affect the bank's balance sheet?

A) Required reserves rise by $2,000. B) Excess reserves rise by $1,800. C) Reserves rise by $200. D) Deposits rise by $1,000.