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Author Question: Describe the extensive safety net that has been set up in the United States in order to reduce the ... (Read 14 times)

casperchen82

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on: Jun 30, 2018
Describe the extensive safety net that has been set up in the United States in order to reduce the risk of bank failure.
 
  What will be an ideal response?

Question 2

A monetary policy is not a policy tool under fixed exchange rates. Discuss.
 
  What will be an ideal response?


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GCabra

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Reply #1 on: Jun 30, 2018
Answer to Question 1

(1 ) Deposit insurance
(2 ) Reserve requirements
(3 ) Capital requirements and asset restrictions
(4 ) Bank examination
(5 ) Lender of last resort facilities

Answer to Question 2

True, under fixed exchange rates, domestic asset transactions by the central bank can be used to alter the level of foreign reserves but not to affect the state of employment and output.


casperchen82

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

parker125

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Reply 3 on: Yesterday
Gracias!

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