Explain Two Reasons Why the Fed Does Not Have Complete

question 46

Essay

Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process.

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Definitions:

Agent's Performance

The effectiveness with which an individual acting on behalf of another carries out their duties.

Rejection Vote

is a mechanism or act in decision-making processes where participants vote against a proposal or candidate as a means of expressing disapproval.

Rank And File

This term refers to the ordinary members of an organization as opposed to its leadership or officers.

Constituency's Demands

The expectations or requirements that a group of supporters, voters, or clients has from their representative or service provider.