Question

In: Economics

The Federal Reserve (or ‘Fed’) is the central bank in the USA, set up in 1913....

The Federal Reserve (or ‘Fed’) is the central bank in the USA, set up in 1913. Although it consists of 12 regional Federal Reserve Banks, it is the Federal Reserve Board in Washington that sets monetary policy and the Federal Open Market Committee (FOMC) that decides how to carry it out. In what ways is the Fed’s operation of monetary policy similar to and different from Bank Negara Malaysia?

Solutions

Expert Solution

bSummary:- Both the banks work for the economic stability which includes sustainable employment, inflation, interest rate. As per 'Fed' is concerned it is an private owed organisation but profit made by shareholders transferred to government ut decision's regarding reducing or increasing the interest rates are not suggested/govern by the federal government, on the other hand Bank Negara Malaysia is fully govenment owed organisation where appointment and deciosion's influenced by government boddies.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

The FED (Central Bank in the USA) is watching the actions of the federal government and...
The FED (Central Bank in the USA) is watching the actions of the federal government and believes that federal government spending will increase next quarter which will lead to future rates of inflation greater than 3 percent. a. Using the Money Supply Model explain how the FED will use its TOOLS and affect inflation. Define the key macro terms and the Money Supply Model in business friendly terms. b. Businesses are concerned about both inflation and higher interests. Explain why...
The Federal Reserve (the Fed) is the central bank of the United States with the power...
The Federal Reserve (the Fed) is the central bank of the United States with the power to create money. When the Fed decides to increase the money supply by creating more money, how do they go about doing this? What role do banks play in this process? Where does the money come from to pay for all their purchases?
The federal reserve system, also known simply as the fed, is the central bank of the...
The federal reserve system, also known simply as the fed, is the central bank of the united states. the fed has several important functions such as supplying the economy with currency, holding deposits of banks, lending money to banks, regulating the money supply, and supervising the banking system. explain how the federal reserve and the banking system creates money (i.e., increases the supply of money). is this an inherently inflationary practice? explain the factors that affect the demand for money.
The federal reserve system, also known simply as the fed, is the central bank of the...
The federal reserve system, also known simply as the fed, is the central bank of the united states. the fed has several important functions such as supplying the economy with currency, holding deposits of banks, lending money to banks, regulating the money supply, and supervising the banking system. explain how the federal reserve and the banking system creates money (i.e., increases the supply of money). is this an inherently inflationary practice? explain the factors that affect the demand for money.
The federal reserve system, also known simply as the fed, is the central bank of the...
The federal reserve system, also known simply as the fed, is the central bank of the united states. the fed has several important functions such as supplying the economy with currency, holding deposits of banks, lending money to banks, regulating the money supply, and supervising the banking system. explain how the federal reserve and the banking system creates money (i.e., increases the supply of money). is this an inherently inflationary practice? explain the factors that affect the demand for money.
The Federal Reserve System (the Fed) is the nation’s central bank; what does it do?
The Federal Reserve System (the Fed) is the nation’s central bank; what does it do?
The Fed (Federal Reserve System) was given great power in 1913 to undertake potentially beneficial actions....
The Fed (Federal Reserve System) was given great power in 1913 to undertake potentially beneficial actions. Did this also give it a great power to engage in potentially harmful actions? Explain why or why not.
the Fed (Federal Reserve System) was given great power in 1913 to undertake potentially beneficial actions....
the Fed (Federal Reserve System) was given great power in 1913 to undertake potentially beneficial actions. Did this also give it a great power to engage in potentially harmful actions? explain why or why not
Central banks like the Reserve Bank of New Zealand and the U.S. Fed set monetary policy...
Central banks like the Reserve Bank of New Zealand and the U.S. Fed set monetary policy with a dual mandate: to maintain price stability and support maximum sustainable employment. However, maximum employment does not mean that every able man or woman must have a job, and stable prices do not mean average measured inflation is exactly zero, so the policy mandate sounds more like a Shakespearean ‘much ado about nothing’. (300 words)
Briefly explain the role of the central bank (Federal Reserve) in the economy.
Briefly explain the role of the central bank (Federal Reserve) in the economy.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT