Chapter 13, Problem 1E

To determine

(a)

To state:

The names of 12 cities where district banks are located.

Explanation of Solution

The 12 cities in which district banks are located are as follows:-

1. Minneapolis
2. Boston
3. Philadelphia
4. New York
5. Cleveland
6. Atlanta
7. Richmond
8. St. Louis
9. Chicago
10. Dallas
11. Kansas City
12. San Francisco

Economics Concept Introduction

Federal Reserve System created 12 Federal Reserve district through the act of Federal Reserve Act 1913. Federal Reserve is responsible for supervising and regulating the banks to maintain financial stability. Apart from providing financial assistance to the bank, fed is responsible for adopting a monetary policy that helps in maintaining the flow of money in the market and reducing the impact of the recession.

To determine

(b)

Name of the Federal Reserve district where one lives in.

Explanation of Solution

For instance, Person 'A' lives in San Francisco, where the Federal Reserve Bank of San Francisco is situated.

Economics Concept Introduction

Federal Reserve System created 12 Federal Reserve district through the act of Federal Reserve Act 1913. Federal Reserve is responsible for supervising and regulating the banks to maintain financial stability. Apart from providing financial assistance to the bank, fed is responsible for adopting a monetary policy that helps in maintaining the flow of money in the market and reducing the impact of the recession.