Who decides to print money in Canada?

July 7, 2024 No Comments

A: In Canada, new money comes from two places: the Bank of Canada (BOC) and chartered banks such as the Toronto Dominion Bank (TD) and the Royal Bank of Canada (RBC). The Canadian banking system is one of the most respected and stable banking systems

Why do some people claim the Federal Reserve is unconstitutional?

July 7, 2024 No Comments

A: The U.S. Constitution does not mention the need for a central bank, nor does it explicitly grant the government the power to create one. Those who adhere to a strict interpretation of the Constitution believe the government does not have any authority not specifically

Who decides when to print money in India?

July 7, 2024 No Comments

A: The Reserve Bank of India (RBI), manages currency in India. The bank’s additional responsibilities include regulating the country’s credit systems and using monetary policy to establish financial stability in India. The institution is headquartered in Mumbai, India. Before 1934, the government of India had the

Why do supply shocks occur and who do they negatively affect the most?

July 7, 2024 No Comments

A: The exact nature and cause of supply shocks is imperfectly understood. The most common explanation is that an unexpected event causes a dramatic change in future output. According to contemporary economic theory, a supply shock creates a material shift in the aggregate supply curve

Who decides when to print money in the U.S.?

July 7, 2024 No Comments

A: The U.S. Treasury controls the printing of money in the United States. However, the Federal Reserve Bank has control of the money supply through its power to create credit with interest rates and reserve requirements. Since credit is the largest component of the money

Why do we need a secondary market?

July 7, 2024 No Comments

In secondary markets, investors exchange with each other rather than with the issuing entity. Through massive series of independent yet interconnected trades, the secondary market drives the price of securities toward their actual value. Moreover, the secondary markets create additional economic value by allowing more

Who discovered the law of supply and demand?

July 7, 2024 No Comments

A: The law of supply and demand, which dictates that a product’s availability and demand impacts its price, was noticed in the marketplace long before it was mentioned in a published work. Philosopher John Locke is credited with one of the earliest descriptions of this

Why does fighting money laundering reduce overall crime?

July 7, 2024 No Comments

A: Money laundering is the process of converting funds received from illegal activities into ostensibly clean money that does not raise suspicion from banks and financial institutions. Terrorists, organized criminals and drug smugglers rely extensively on money laundering to maintain cash flow for their illegal

Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, for the NYSE or for brokerage firms?

July 7, 2024 No Comments

A: Before we address this question, let’s review what specialists do. Specialists are people on the trading floor of an exchange, such as the NYSE, who hold inventories of particular stocks. A specialist’s job is not only to match buyers and sellers, but also to

Who sets fiscal policy, the president or congress?

July 7, 2024 No Comments

A: In the United States, fiscal policy is directed by the executive and legislative branches. In the executive branch, the two most influential offices belong to the president and the Treasury secretary, although contemporary presidents often rely on a council of economic advisers. The U.S.

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