Financial Markets and Institutions (2-downloads)

1. Why was the Federal Reserve System set up with 

12 regional Federal Reserve banks rather than one

central bank, as in other countries?

2. What political realities might explain why the Federal

Reserve Act of 1913 placed two Federal Reserve

banks in Missouri?

3. “The Federal Reserve System resembles the U.S.

Constitution in that it was designed with many checks

and balances.” Discuss.

4. In what ways can the regional Federal Reserve banks

influence the conduct of monetary policy?

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Chapter 9 Central Banks and the Federal Reserve System