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Why was the federal reserve system set up with regional bank

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FEDERAL RESERVE SYSTEM

Why was the Federal Reserve System set up with 12 regional banks rather than one central bank as in other countries? Why was it made an independent quasi-governmental body and not a direct part of the federal government?

You often read in the newspapers that the Fed has just lowered the discount rate. Does this signal that the Fed is moving toward a more expansionary monetary policy? Why or why not?

Reference no: EM131134753

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