Why does the Federal Reserve have a monopoly on the issuing of American Currency?

1 Answer

Answer :

What leverage would you use to control inflation and the money supply if you couldn’t set rates?

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Description : How has the Federal Reserve System managed since its inception?

Last Answer : answer:It seems to me a strong Federal Reserve System established and then enhanced under the Glass Stegall Act led the way out of the Great Depression (along with tremendous government borrowing and ... there are people who would think the economy functions better now that it has been weakened.

Description : Why do older US dollars say "this note is legal tender for all debts, puiblic and private, and is redeemable in lawful money at the US treasury or at any federal reserve bank?"?

Last Answer : I believe at that time we were on the gold standard and the money could be exchanged for the appropriate amount of gold. I’m trying to find a bit more info right now here. When we went off the gold standard, this would no longer have been true.

Description : Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

Last Answer : If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther. ... takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.

Description : Board of Governors of the Federal Reserve System - Mortgage Foreclosure Do You Care

Last Answer : i am a dumbass he he. i made the question and suddenly POOF the answer button grabbed my attention… please move along…

Description : the federal reserve _____ the money supply to lower inflation. -General Knowledge

Last Answer : The Federal Reserve reduces (decreases) the money supply to lower inflation.

Description : What monetary policy strategy of the federal reserve do these headlines reflect?

Last Answer : Encouraging business growth by putting more money into circulation

Last Answer : The name of the central bank of the United States is the Federal Reserve System.

Description : why has the dollar value decreased after the federal reserve system why is this true?

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Description : What describes the primary role of the Federal Reserve?

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Description : How much is a 1928 A 100 dollar federal reserve note worth?

Last Answer : Feel Free to Answer

Description : If the federal reserve sells 40000 in treasury bonds to a bank at 5 interest what is the immediate effect on the money supply?

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Description : What is the value of 1934 A green seal federal reserve note?

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Description : If the federal reserve buys a treasury bond from a bank what will be the effect on interest rate the bank charges its customers for a loan?

Last Answer : The interest rates will decrease since there are more available funds for the bank to loan.

Description : If the federal reserve decreases the reserve rate from 5 to 2?

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Description : What was the federal reserve was designed to?

Last Answer : Financial panicsBankruptciesBoom and bust economyfinacial panics

Description : Has the Federal Reserve increased the rates for small business loans, and if so by how much?

Last Answer : The Federal Reserve does not set the rates for small business loans. They set the Federal Discount Rate-- the rate at which banks may borrow directly from the Fed. Since this is the rate ... they always charge more than this rate for loans. SBA.gov administers Federally Backed small business loans.

Description : Which of the following is one way the Federal Reserve Bank serves the government?

Last Answer : selling government securities

Description : What does “lender of last resort” mean with respect to the Federal Reserve?

Last Answer : It will lend money to a bank in a financial emergency.

Description : What is the makeup of the Federal Reserve Districts?

Last Answer : Each district is made up of more than one state. Federal Reserve Districts include a mixture of agricultural, manufacturing, and service industries as well as rural and urban areas.

Description : What will the federal government (Federal Reserve Bank) do in an attempt to encourage saving and investing?

Last Answer : raise dividend rates

Description : What will the federal government (Federal Reserve Bank) do in an attempt to encourage saving and investing?

Last Answer : raise dividend rates

Description : 9. If the Federal Reserve wishes to increase the money supply, it should: a. raise the reserve requirement b. raise the discount rate c. buy Treasury securities in the open market d. all of the above

Last Answer : c. buy Treasury securities in the open market

Description : 5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called: a. discounts b. federal funds c. reserves d. collateral

Last Answer : c. reserves

Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above

Last Answer : a. it is a system of 12 central banks

Description : Given an initial equilibrium in the money market and foreign exchange market, suppose the Federal Reserve increases the money supply of the United States. Under a floating exchange-rate system, the ... C. Be officially devalued by the government D. Be officially revalued by the government

Last Answer : B. Depreciate in value relative to other currencies

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Last Answer : A global currency? Is this the beginning of a world government?

Description : The outcome of 'devaluation of currency' is - (1) increased export and improvement in balance of payment (2) increased export and foreign reserve deficiency (3) increased import and improvement in balance of payment (4) increased export and import

Last Answer : (1) increased export and improvement in balance of payment Explanation: Devaluation is a reduction in the exchange value of a country's monetary unit in terms of gold, silver, or foreign ... home country's export sales and discourages expenditures on imports, thus improving its balance of payments.

Description : Cash kept in the currency chest is owned by? A. Currency Chest branch bank B. State Bank of India C. Central Government D. Reserve Bank of India

Last Answer : D. Reserve Bank of India Explanation: The amount of cash kept in the currency chest belongs to the RBI and is used for maintaining the Cash Reserve Ratio. To facilitate the distribution of ... These are actually storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank.

Description : Reserve Bank of India has made it mandatory on the banks to discontinue the practice of stapling the currency note packets under _______ of the Banking Regulation Act, 1949 A. Section 35A B. Section 25A C. Section 15A D. Section 30A E. None of the Above

Last Answer : A. Section 35A Explanation: The Reserve Bank of India has made it mandatory on the banks to discontinue the practice of stapling the currency note packets. It has issued a directive to banks under Section 35A of the Banking Regulation Act, 1949.

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Last Answer : (3) Governor, Reserve Bank of India

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Last Answer : B. Special Drawing Right

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Last Answer : (D) Finance Secretary of Government of India

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Last Answer : Answer: A

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Last Answer :  increased export and improvement in balance of payment

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