If the Federal Reserve did not regulate fiscal policy, monitor banks and provide services for banks,...
If the Federal Reserve did not regulate fiscal policy, monitor banks and provide services for banks, what would most likely be the economic conditions to transact business in the U.S.?
a. The economy would primarily be based on a barter system rather than a fiat system.
b. There would be no discrimination in lending by local banks.
c. The economy would be less efficient and transactions most likely more costly.
Homework Answers
ANSWER:
(C) The economy would be less efficient and transactions most likely more costly.
This is because the role of Federal Reserve is very essential in order to run economy smoothly and to ensure the proper functioning of the commercial banks.
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If the Federal Reserve did not regulate fiscal policy, monitor
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71. Which of the following is the basic economic policy function of the Federal Reserve Banks?...
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The federal reserve conducts fiscal policy to manage inflation and maximize employment true, false How many federal...
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1. Describe the overall structure of the U.S. Federal Reserve System. Be sure to provide at...
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