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Essay

The Federal Reserve System

Essay specific features

 

Issue:

Business

 

Written by:

Lora A

 

Date added:

May 30, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

17 / 4578

 

Was viewed:

232 times

 

Rating of current essay:

 
Essay content:

This problem would be compounded when this fear spread to other banks. Runs on a single bank would escalate and spread from one bank to another causing financial panic (http://www.dallasfed.org). Another problem prior to the establishment of the Federal Reserve System was the inelasticity of bank credit and the supply of money...
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Small banks placed their excess reserves in large central reserve banks. Whenever a bank's depositors wanted their funds, the smaller banks would be covered by the central banks. The system worked well during normal conditions. Some banks would draw down on their reserves as other banks would be building up their reserves...
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