1983 DBQ

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(Doc. G) The rail companies justified this practice by asserting that if they did not give rebates, they would not make enough profit to stay in business. While the railroads felt that they must use this practice to make a profit, the farmers were justified in complaining, for they were seriously injured by it...
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While the railroads felt that they must use this practice to make a profit, the farmers were justified in complaining, for they were seriously injured by it. Despite the fact, the company might go into bankrupt, it is still not acceptable for anyone cheat for money because even if there was a minor shortage of money, the person being conned can fall into debt, which most of the farmers did...
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Banking Banks are just like other businesses. Their product just happens to be money. Other businesses sell widgets or services; banks sell money -- in the form of loans, certificates of deposit (CDs) and other financial products...	5 / 1292
Human "Bank" is a term people use broadly to refer to many different types of financial institutions. What you think of as your "bank" may be a bank and trust company, a savings bank, a savings and loan association or other depository institution...	3 / 702
Banks In an attempt to stabilize the banking system, the federal government first set up the Federal Reserve System as a lender of last resort to provide liquidity to the banks during banking panics...	3 / 785
how does the federal reserve control the money supply? The Federal Reserve System "The Fed" controls the money supply in the United States by controlling the amount of loans made by commercial banks. New loans are usually in the form of increased checking account balances, and since checkable deposits are part of the money supply, the money supply increases when new loans are made and decreases when they decrease...	2 / 310
How Money is Created Money is created in two ways. First money comes from borrowing it and spending it. “Most of the total money supply is created by banks making loans to the non-bank public”...	2 / 462
Creating Money Money is created when a bank’s gives a loan to and individual or group and the corresponding account is credited with the given amount of money. This may sound strange to some that think of money as gold, silver, or physical currency...	2 / 372
Federal Reserve Bank Changing Money Supply One way the Federal Reserve Bank can change the money supply is by purchasing U.S. government securities from financial institutions. They can create “funds” or credits on their balance sheets in exchange for the securities...	2 / 534