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Juliette [100K]
3 years ago
9

Which of the following is NOT a responsibility of the Federal Reserve System?

Business
2 answers:
sergejj [24]3 years ago
7 0
I believe the answer is: A. <span>The Fed only loans money to member banks.

During inflation for example, the federal reserve could issue government owned bonds that can be bought by normal citizens (non member banks)
This allow them to take in a lot of money from market circulation and gradually increase the value of the currency.</span>
liubo4ka [24]3 years ago
4 0
<span>The correct answer is A. The Fed issues coin and paper money to the US treasury (i.e. US currency). It also sells, transfers and redeems government bonds, bills, notes and securities as it is, effectively, the government's bank. The Fed also regulates how much money each bank has. However, they do not only loan money to member banks (member banks are simply banks which own stocks in the Fed).</span>
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1. positive externalities

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There are generally four rationales or logical thinking for the public provisions for education. They are the positive externalities, failure to maximize the family utility, educational credit for the market failure, redistribution.

Now each rationales provides reasons that educations is more likely to be underprovided without any intervention from the government. But many of them does not provide any reasons for the mandate of education.

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Similarly government can also address positive externalities that are associated with productivity gains or just letting a person educated without any mandating it.

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3 years ago
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