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:

Normalization

The process of making something normal or standard, typically referring to the process of making specific values, behaviors, or societal conditions accepted as norms.

Two-Tiered

A system or structure that has two distinct levels or layers, often used to describe hierarchies in society, economy, or services.

Health Care

A system or organization that provides medical services to improve and maintain the health of a population.

Jump The Cue

An informal phrase referring to bypassing a line or sequence to gain a quicker or more favorable position, typically seen as unfair or unethical.