Theresa is the manager of Ascot Bank, a locally bank in her hometown. In addition to managing relationships with her employees and local customers, she has a good relationship with the bank examiner who frequently visits the bank to look at the accounts. The examiner ensures that Theresa’s bank is not making too many or too few loans and is keeping the right amount of cash reserves in the bank vault. The examiner also wants to make sure that the computers that link her bank with the central bank are functioning properly so the bank deposits people’s checks into the proper accounts worldwide. The computer also informs her of any changes in the interest rate the Federal Reserve sets. What interactions do you see between the local bank and the Federal Reserve?
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Theresa is the manager of Ascot Bank, a locally bank in her hometown. In addition to managing relati...
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