Question

MONEY FOR NOTHING questions:

1. When and why was the Federal Reserve central banking system created? Explain the conditions.

2. Did the United States ever have central bank prior to the Federal Reserve? Explain.

3. Is the Federal Reserve public(government) or private? Explain.

4. How did the Federal Reserve impact the Great Depression?

5. What is the "Great Moderation" of the 1990s?

Answer 1

1The Federal Reserve was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law. Today, the Federal Reserve's responsibilities fall into four general areas. Beginning of dialog window. Escape will cancel and close the window.

2 Although an instrument of the US Government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisionsdo not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the ... .

5.The UK great moderation from 1992 to 2008 low inflation, positive economic growth. Generally, the great moderationrefers to the period 1986 – 2006. In the UK, the great moderation is considered to be the period 1993-2007 because the UK had a classic boom and bust in late 1980s and early 1990s.