Author Question: Describe a federal land bank. What will be an ideal response? ... (Read 48 times)

penguins · **on:** Jul 21, 2018

Describe a federal land bank.

What will be an ideal response?

Question 2

Explain the meaning of comparative advantage, and give an example.

What will be an ideal response?

Cnarkel · **Reply #1 on:** Jul 21, 2018

Answer to Question 1

Federal land banks were created by Congress in 1916 to provide long-term credit for agriculture.
These banks are excellent sources of credit for the purchase of real estate because of the favorable
interest rates.

Answer to Question 2

Comparative advantage is the emphasis in a given area where the most returns can be achieved. This is
illustrated by the change in livestock production in New York State. Long ago, most farms in New
York raised sheep. Now, many of those farms produce milk because of the high demand and favorable
prices for milk. Producing milk became more advantageous than lambs and wool.