Anyone can start a bank operation but first you need permission from the government. What is...

Anyone can start a bank operation but first you need permission from the government. What is that permission called?

With respect to controlling money supply, the law requires the Federal Reserve to take orders from what part of the government?

Expert Solution

The permission to start a bank operation from the Government is called banking license. The licensing of banking companies is the process of getting permission from Central bank ( on behalf of Government) to start a banking operation.
One among the methods adopted by the Federal Reserves to control money supply is Open Market Operaton; that is , the buying and selling of Government securities. When Congress approves an increase in the national debt, treasury department prepares a mix of securities that has to given to private dealers for trading. And federal reserve uses it for controlling money supply.

Rahul Sunny answered 2 years ago

Can anyone please explain the sellers bank in trade finance, and what they do.

This first phase will take you to the UNadjusted trial balance. You will need to: Start...

This first phase will take you to the UNadjusted trial balance. You will need to: Start with the post-closing trial balance dated December 31, 2018 provided in the appropriate tab, and enter the ending balances from the post-closing trial balance into your general ledger accounts. These will be your beginning balances for 2019. Make the general journal entries in the general journal. There are 19 summary entries that you will need to record. No dates are provided so use the...

Can anyone please explain the buyers bank and sellers bank in trade finance.

1. If the central bank purchases government bonds in the open market operation, the quantity of...

1. If the central bank purchases government bonds in the open market operation, the quantity of money in the economy will . A. decrease B. increase C. remain unchanged D. increase before it decreases 2. In the money market, which of the following will not shift the money demand curve? A. A higher price level. B. A lower short-term nominal interest rate. C. A higher real GDP. D. A lower real consumption expenditure. 3. Suppose that, in an economy, nominal...

write about the unique things can distinguish a person from anyone else. what makes you special.

I have this matlab program, and need to turn it into a C++ program. Can anyone...

I have this matlab program, and need to turn it into a C++ program. Can anyone help me with this? % Prompt the user for the values x and y x = input ('Enter the x coefficient: '); y = input ('Enter the y coefficient: '); % Calculate the function f(x,y) based upon % the signs of x and y. if x >= 0 if y >= 0 fun = x + y; else fun = x + y^2; end...

Does Canada need a bank owned by the government (Business Development Bank of Canada) to support...

Does Canada need a bank owned by the government (Business Development Bank of Canada) to support small businesses and entrepreneurs, or would the existing private-sector banks be enough? Would the Big 5 banks lend money to these businesses if the BDC did not exist? (Long answer required)

How can a bank prepare for the expected (normal) and unexpected operation risk?

How do you start responding to others? What do you need to look for in a...

How do you start responding to others? What do you need to look for in a response?

You have an opportunity to acquire a property from First Capital Bank. The bank recently obtained...

You have an opportunity to acquire a property from First Capital Bank. The bank recently obtained the property from a borrower who defaulted on his loan. First Capital is offering the property for $200,000. If you buy the property you will have to (1) spend $10,500 on various acquisition related expenses and (2) exactly $2,000/month during the next 12 months for repairs in order to prepare for sale. Because First Capital Bank would like to sell the property as soon...

Question