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:

Relaxation

A state of reduced tension and stress, often achieved through techniques such as deep breathing, meditation, or yoga.

Stress

Stress refers to the psychological and physiological response to perceived challenges or threats in one's environment.

Exercise

Exercise is any bodily activity that enhances or maintains physical fitness and overall health and wellness.

Reduce

To decrease in size, amount, extent, or number.