ECONOMICS
MONEY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
They believed that the banking system already in existence was sufficient.
|
|
|
They believed an international banking system would be best.
|
|
|
They believed that a centralized banking system was necessary.
|
|
|
They believed that state governments should own and run the nation’s banks.
|
Detailed explanation-1: -Federalists, like Alexander Hamilton, believed that a strong, central bank was essential for the new nation. A strong, central bank could prevent abuses in banking. Anti-federalists, like Patrick Henry, believed that a strong, central bank would have too much power.
Detailed explanation-2: -Federalists battled for adoption of the Constitution They favored weaker state governments, a strong centralized government, the indirect election of government officials, longer term limits for officeholders, and representative, rather than direct, democracy.
Detailed explanation-3: -The Fed provides the country with a safe, flexible, and stable monetary and financial system. The Fed’s main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.
Detailed explanation-4: -They believed that a centralized banking system was necessary.
Detailed explanation-5: -Central banks conduct monetary policy by adjusting the supply of money, usually through buying or selling securities in the open market. Open market operations affect short-term interest rates, which in turn influence longer-term rates and economic activity.