Explain Money Multiplier Basics How do private commercial banks multiply the quantity of money placed in circulation by the Federal Reserve? Solution Fist of all guys , lets understatnd the correct and too the point meaning of Federal Reserve.... The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks. Let first understand the regulatory policies that are placed on banks. Private commercial banks multiply the quantity of money placed in circulation by the Federal Reserve by using higher spending and tax cuts. The founding of the Federal Reserve, the Central US Bank, has proved to be one of the most significant events in world history. This single move resulted in the massive accumulation of wealth in the hands of a small number of individuals, financial institutions and corporations whose combined power allows them to exercise effective control of the US and the world economy, and in turn to exercise political leverage sufficient to determine the course of history. While this overwhelming concentration of power continues, nothing can change the direction of the world economy. The world is not in the hands of a people-centred democratic system, but of a small oligarchy holding power and passing it on from generation to generation. Thinking about fractional reserve banking more broadly, to denounce it is the equivalent of screaming at the sun for it setting in the west. Well, sorry, but the sun sets in the west and banks lend out the vast majority of funds entrusted to them. Fractional reserve banking quite simple IS. It.

1. Explain normal distribution and why it is important for you to understand?
Solution
the normal (or Gaussian) distribution is a continuous probability distribution that has a bell-
shaped probability density function, known as the Gaussian function or informally the bell curve
f(x,,^2) =(1/(2) )*e^(-(x-)^2/(2^2))
where is the mean and ^2 is the variance of the distribution and x is a random variable.
A normal distribution is often used as a first approximation to describe real-valued random
variablethat cluster around a single meanvalue.
The normal distribution is considered the most prominent probability distribution in statistics.
There are several reasons for this:
1)First, the normal distribution is very tractable analytically, that is, a large number of results
involving this distribution can be derived in explicit form.
2)Second, the normal distribution arises as the outcome of the central limit theromwhich states
that under mild conditions the sum of a large number of random variableis distributed
approximately normally
3)Finally, the "bell" shape of the normal distribution makes it a convenient choice for
modelling a large variety of random variables encountered in practice.
it is vary imporatant since almost all other distribution can also be approaximated into normal
distribution.