this tool is powerful and makes it difficult for bank managers to plan for the future and manage funds as they like.
Reserve requirements are the amount of money that a bank holds in its reserve to ensure that it can meet liabilities in the case of sudden withdrawals. The reserve requirement is a tool that is used by the central bank of a country to either increase or decrease the money supply in the economy and also influence interest rates.
The changes in reserve requirements to conduct monetary policy is not a good idea for the United States because it is a powerful tool which makes it hard for bank managers to make future plans and manage funds as they want. In a situation whereby small variation in the reserve ratio brings about huge changes in an economy, the changes are positive and okay but in a situation whereby they bring about negative effect, it will be hard to face such scenarios.
D. the twelve Federal Reserve Banks
The supply of money within an economy is done by the Central Bank of a country
In the United States this central bank is called the Federal Reserve.
The Federal Reserve are in twelve locations: New York, Boston, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis,.Kansas City, Dallas, and San Francisco.
The Federal Reserve uses the following tools to regulate money supply in the economy: interest rate, open market operations, and compulsory reserve deposits by banks.
He surely knew he faced a difficult set of challenges in the immediate future: overseeing the final defeats of Germany and Japan; managing the U.S. role in post-war international relations; supervising the American economy's transition from a war-time to a peace-time footing; and maintaining the unity of a fractious and powerful Democratic Party. Hope this helps... ;)
William G. "Bill" Ouchi, a Distinguished Professor of Management and Organizations, was of the opinion that a pure Type J approach to management would not work in the United States because it is based on the values and attitudes of Japanese culture.