Answer the three questions about the Federal Reserve System

Business Finance

1- Why was the Federal Reserve System set up with 12 regional Federal Reserve banks rather than one central bank, as in other countries?

2- Which entities in the Federal Reserve System con- trol the discount rate? Reserve requirements? Open market operations?

3- Compare the structure and independence of the Federal Reserve System and the European System of Central Banks.

Important Notes:

– Use your own words ( No Citation, No References).

– Do not write long answers ( 3-5 Sentences ONLY ) for each question.

– Find the attached Power point of the chapter ( you may find and use information from it)

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