Congress passed legislation to create the federal reserve system in 1913 in order to
A. Take the monetary control over the economy away from the Treasury Department
B. End the instability created by a huge crude oil price hike during that time
C. End the instability created by bank panics by acting as a lender of last resort
Ans: C. End the instability created by bank panics by acting as a lender of last resort
You might also like to view...
If a perfectly competitive firm manufacturing chairs decides to produce 100 more chairs, what happens to the market price of a chair?
What will be an ideal response?
For the following question, assume the following facts:
(1 ) Chase (which is located in the United States) has a 20% reserve requirement imposed by the government. (2 ) Bank of Germany has no reserve requirements. (3 ) Both banks may invest at an 8% interest rate. (4 ) Both banks have fixed costs of $3 per deposit made. What is the difference between the minimum interest rates each bank can offer and still make a profit if the deposit is $500 for 1 year? A) 0 - Both banks can offer the same rate. B) 1% C) 1.6% D) 0.4% E) 20%