List Three Duties That an Agent Has to the Principal

question 113

Essay

List three duties that an agent has to the principal.

Understand the concept of excess reserves and its implications for banking operations and lending.

Comprehend the operational mechanics of open market operations and their direct impact on the economy.

Understand the concepts of actual reserves, required reserves, and excess reserves in the banking system.

Identify and describe the tools of monetary policy used by the Federal Reserve, including open market operations, discount rate, and reserve requirements.

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Definitions:

Partnership

A lawful business structure involving two or more people who divide both management responsibilities and earnings.

Payments

The action or process of paying someone or something, typically involving transferring money in exchange for goods or services.

Big Bank

A colloquial term often used to describe very large multinational banking and financial services corporations.

Capital Contribution

The act of injecting financial resources or assets into a company or partnership by its owners or partners.