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From the perspective of a policy maker, which of the following combinations would make an outside disturbance to an economy most troublesome?
Federal Banks
Centralized banking institutions established by a country to oversee the monetary system and implement national economic policies.
State Banks
Financial institutions chartered by a state to provide banking services.
National Banks
Financial institutions that are chartered by the federal government and play a key role in the country’s financial system and economy.
Discount Rate
The interest rate charged to commercial banks and other financial institutions for the loans they take from the Federal Reserve Bank's lending facility.
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