Author Question: Both the Federal Reserve System in the United States and the European Central Bank are comprised of ... (Read 99 times)

LaDunn · **on:** Jun 30, 2018

Both the Federal Reserve System in the United States and the European Central Bank are comprised of geographically dispersed Banks. How might such decentralization contribute to successful monetary policy?

What will be an ideal response?

Question 2

President Franklin Delano Roosevelt declared a bank holiday, closing all U.S. banks in ________.

A) July 1776
B) October 1929
C) March 1933
D) September 2001

abctaiwan · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The economies of both the U.S. and Europe encompass many regions with distinct economic specializations, income levels, demographics, etc. Policymakers need to be aware of this heterogeneity and of how the policies under consideration might impact some regions differently than others. Having had a role in the design and selection of policies, officials and citizens at the regional level will be more willing and able to support and to implement the policies.

Answer to Question 2

C