(a)
To state:
The names of 12 cities where district banks are located.
Explanation of Solution
The 12 cities in which district banks are located are as follows:-
- Minneapolis
- Boston
- Philadelphia
- New York
- Cleveland
- Atlanta
- Richmond
- St. Louis
- Chicago
- Dallas
- Kansas City
- San Francisco
Federal Reserve System created 12 Federal Reserve district through the act of Federal Reserve Act 1913. Federal Reserve is responsible for supervising and regulating the banks to maintain financial stability. Apart from providing financial assistance to the bank, fed is responsible for adopting a
(b)
Name of the Federal Reserve district where one lives in.
Explanation of Solution
For instance, Person 'A' lives in San Francisco, where the Federal Reserve Bank of San Francisco is situated.
Federal Reserve System created 12 Federal Reserve district through the act of Federal Reserve Act 1913. Federal Reserve is responsible for supervising and regulating the banks to maintain financial stability. Apart from providing financial assistance to the bank, fed is responsible for adopting a monetary policy that helps in maintaining the flow of money in the market and reducing the impact of the recession.
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Chapter 13 Solutions
Macroeconomics (MindTap Course List)
- How are banking laws made and implemented? What are the primary federal agencies that regulate banks?arrow_forwardWhat is the Federal Reserve System? Why was it created?arrow_forwardHow do private commercial banks multiply the quantity of money placed in circulation by the Federal Reserve?arrow_forward
- What is the Federal Reserve System, and what is its purpose?arrow_forwardWhy were banks originally created? How has their purpose evolved over time?arrow_forwardAnswer the following questions. What is the purpose of the Federal Reserve System? List and explain the three parts that make up the structure of the Federal Reserve System.arrow_forward
- How do you make people believe that the banking system is safe? In the old days it was often done with architecture. Bank buildings were massive buildings with large cement pillars in front. Would you agree or disagree with this statement?arrow_forwardWhy does the Federal Reserve require commercial banks to have reserves?arrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub CoEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning