Does having a regional bank system instead of one central bank make any difference in the economy anymore?
ANSWER: A Federal Reserve Bank is a regional bank of the Federal Reserve System and is the central banking system of the United States. Having a regional banking system instead of one central bank creates many impacts in the economy. A regional presence will help in facilitating a surveillance of the economy and assists central bank to communicate with the public. The competition among regional banks in the system stimulates an innovative thinking on research, operational, and policy questions. Moreover the regional data compiled by regional banks in the system is of great impact in the banking arena because the data information is used to control inflation patterns, and thus helps central banking to secure jobs; and enhance the financial and economic stability.
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