Asked by: Loyce Jagodin
business and finance financial reform

How do member banks of the Federal Reserve differ?

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How do member banks of the Federal Reserve differ from other depository institutions? They participate in the Federal Open Market Committee. They receive services from the regional Federal Reserve Bank. They are stockholders in their regional Federal Reserve Bank.


Subsequently, one may also ask, how do you member banks of the Federal Reserve differ from other depository institutions?

They participate in the Federal Open Market Committee. They receive services from the regional Federal Reserve Bank. They are stockholders in their regional Federal Reserve Bank.

Furthermore, how does the government help ensure fair prices for all citizens? Answer 1) Option C) By negotiating affordable rates with the supplier. Explanation : The government always helps to ensure that the fair prices are observed for all citizens of a particular area served by one utility company usually by negotiating affordable rates with the supplier.

Then, which is an example of the deregulation of a government regulated natural monopoly?

An example of the deregulation of a government regulated natural monopoly is where the new ;aw allows consumers to be able to choose between the electricity providers which is the first choice because a deregulation of a government regulated natural monopoly is a way of the rules of having to be remove or reduced when

Why is it important for natural monopolies to exist?

They help the consumer decide among several suppliers for a necessary service. They improve the economy by using materials that are native to the area. They make it more efficient to deliver necessary goods and services to consumers.

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What should Lilliput's government do to prevent inflation from happening?

What should Lilliput's government do to prevent inflation from happening? Raise the income tax, which gives citizens less money to spend, and stop buying services from civilian-owned businesses, which eliminates jobs.

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How open market operations work?

The Federal Reserve (Fed) buys and sells government securities to control the money supply. This activity is called open market operations (OPO). By buying and selling government securities in the free market, the Fed can expand or contract the amount of money in the banking system and pursue its monetary policy.

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How the Federal Reserve may use the discount rate and the reserve requirement to increase the money supply?

The Federal Reserve can increase the money supply by lowering the discount rate. a. Lowering the discount rate gives depository institutions a greater incentive to borrow, thereby increasing their reserves and lending activity. The Federal Reserve can decrease the money supply by increasing the discount rate.

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Which are more popular with citizens contractionary or expansionary?

Contractionary, because they decrease the amount of money held by the government and put more in the hands of its citizens. Expansionary, because they increase the amount of money held by the government and put less in the hands of its citizens.

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How does government regulate natural monopolies?

The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through: Price capping – limiting price increases.

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How does the US government slow economic growth?

Question: How Does The U.S. Government Slow Economic Growth? By Decreasing Taxes And Decreasing Spending By Decreasing Taxes And Increasing Spending By Increasing Taxes And Decreasing Spending By Increasing Taxes And Increasing Spending.

Zakaria Poshekhonov

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When the government sets a price for a good above equilibrium there will be?

When government sets a price for a good above equilibrium, there will be a surplus.

Eutropia Manala

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When a government collects more revenue in one year than it spends there is a budge?

When the government collects more revenue than it spends in a given year, it runs a budget surplus. Since 1970, the U.S. has run a surplus four times, in 1998 through 2001. This is largely attributed to a combination of tax increases and social spending cuts. This is also referred to as a "balanced budget."

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How does the President most directly influence the Federal Reserve System?

How does the president most directly influence the Federal Reserve System? Inflation is skyrocketing, and prices are out of control. The banks are most likely to ask the Fed's to raise interest rates, sell bonds on the open market, and raise the reserve ratio in order to decrease inflation.

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Is water a monopoly?

A natural monopoly will typically have very high fixed costs meaning that it is impractical to have more than one firm producing the good. An example of a natural monopoly is tap water.

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What is a real life example of a monopoly?

Con Edison is a perfect example of a monopoly. Con Edison is the only provider of electricity, water and gas in the United States, therefore they have only one firm. Thus because they are the only firm who provides us with electricity, water and gas, they have complete control over the market.

Fatimata Cherradi

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What gives rise to monopolies?

A natural monopoly arises as a result of economies of scale. For natural monopolies, the average total cost declines continually as output increases, giving the monopolist an overwhelming cost advantage over potential competitors. It becomes most efficient for production to be concentrated in a single firm.

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Is Amazon a natural monopoly?

Amazon could be characterized as a natural monopoly, meaning that it originated with a high startup cost, but eventually incurred low marginal costs as its volume of output increased. This means that consumers have a choice of whether to purchase an item for a certain price from Amazon, or from its competitor.

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Is Apple a natural monopoly?

Microsoft provides the greatest example of a software company that holds a “natural monopoly” on its market. Apple was able to take advantage of this opening in the software market by specializing in mobile-basesd devices such as the iPod, iPad, and iPhone.

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Can monopolies be Allocatively efficient?

Allocative Efficiency requires production at Qe where P = MC. A monopoly will produce less output and sell at a higher price to maximize profit at Qm and Pm. Thus, monopolies don't produce enough output to be allocatively efficient.

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Why does the government allow monopolies to exist?

It's very expensive to build new electric plants or dams, so it makes economic sense to allow monopolies to control prices to pay for these costs. Federal and local governments regulate these industries to protect the consumer. Companies are allowed to set prices to recoup their costs and a reasonable profit.

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What are two common barriers to entry?

Barriers to entry benefit existing firms because they protect their revenues and profits. Common barriers to entry include special tax benefits to existing firms, patents, strong brand identity or customer loyalty, and high customer switching costs.

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Is Google a natural monopoly?

Companies such as Facebook, Google, and Amazon have built natural monopolies for various online services due in large part to first mover advantages, network effects, and natural economies of scale involved with handling large quantities of data and information.

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EveryThingWhat Staff Editor

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27th January, 2020

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