3.
The role of the banking system can be described by explaining the following terms, for example, the Federal Reserve which is the bank of the banks, it hold all the money for the banks and it makes loans to banks too. The stock market plays a major role because they are the ones who decide how our economy is, so that way the banking system does know when we are in a bad shape so this would not cost inflation. Banking Institutions is part of Americas local banks they distribute money to regular citizens like us.
12.3.
1.
In a monetary policy they can change the reserve requirement. The FED can buy or sell bonds and they can also decide if they want to print more money. Fiscal Policy is controlled by elected officials, they set taxes, borrowing and spending money so they can get the economy rolling if they are in a recession.
2.
12.4.
1.
When your are in a Union many advantages can come from that, they can help you out with dues, or they can help you get a medical insurance for your family. They also stand up for workers right, that can be good sometimes in a Economy, The disadvantage of unions is that some unions take advantage of asking for things, for example they might take too much money away from a worker and keep some of it causing in a later time workers to be angry, this creates a bad atmosphere in a work place.
2.
There are many factors that impact the market economy, for example, Technology, this changes has replaced many jobs in the United States, the use of technology in the work place has made work faster and more efficient, it has also made it cheaper for the company because they can hire less workers. International competition is when competition drives down prices, meaning things are available from many different places at many different prices. The shift of labor to services is when factories move from one country to another. Example when a U.S company moves south of the border to Mexico.
