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Essay Details:
Essay text:
The regulations may require a CB to hold a minimum amount of assets in one particular sector of the economy or to set maximum interest rates, prices, or fees to subsidize certain sectors.
? Example: Qualified thrift lender (QTL) test: requires savings institutions to hold 65% of their assets in residential mortgage-related assets to retain a thrift charter.
o consumer protection
o investor protection
? Protect investors from insider trading, outright malfeasance, lack of disclosure, breach of fiduciary responsibilities.
o entry and chartering
? protected against new entrants by high direct costs (thru cap requirements), high indirect costs (restricting the type of individuals who can establish CBs) of entry, produce larger profits for existing firms than those in which entry is relatively easy...
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Common topics in this essay:
- Controlling the Economy with Interest Rates Does it Accomplish the Task on the Consumer Side?
- How has the level of employment/unemployment and national minimum wage legislation impacted on the economy as a whole and how will this effect the economy in the years to come?
- Interest Rates And Bond Valuation
- Interest Rates in the Economy
- Interest Rates
- Minimum Wage Increase has a Maximum Impact
- The Fed And Interest Rates
- The Fed And Interest Rates
- The Fed and Interest Rates
- term structure of interest rates
- Fed and Interest Rates
- Interest Rates
- SME sectors benefits to the Economy
- The Fed And Interest Rates
- Impacting Laws, Regulations And Contractual Obligations For Critical Information Assets
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