part-d: What is the Federal Reserve System (FED)? What role does the FED play in the US? part-e: Explain the organization of the FED. part-f: What are the FED's tools of monetary policy?
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part-d: What is the Federal Reserve System (FED)? What role does the FED play in the US?
part-e: Explain the organization of the FED.
part-f: What are the FED's tools of
part-g: What is the discount rate?
part-h: What is the federal funds rate?
part-i: What problems does the FED encounter when trying to control the US money supply?
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- part-g: What is the discount rate? part-h: What is the federal funds rate? part-i: What problems does the FED encounter when trying to control the US money supply?part-a: What is the definition of money? part-b: What are the different functions of money? part-c: What is money in kind? What is commodity money? What is fiat money? part-d: What is the Federal Reserve System (FED)? What role does the FED play in the US? part-e: Explain the organization of the FED. part-f: What are the FED's tools of monetary policy? part-g: What is the discount rate? part-h: What is the federal funds rate? part-i: What problems does the FED encounter when trying to control the US money supply?Please select ONE of the following questions as your discussion topic and respond with a paragraph or two that directly answers the question AND makes reference to class materials. For full credit, you must also respond to the posts of at least two of your classmates. 1. The Federal Reserve Board has enormous power over people's lives with its power to set and influence policy that determines monetary policy in the United States. Do you think this is proper for a democracy to provide the FED with so such power? How is the FED held accountable?
- Part 1:What is the major objective of monetary policy in the US economy? Explain why. Part 2:How is the chairperson of the Federal Reserve selected? Part 3: Find the names of the current chairperson of the Federal Reserve and members of the Board of Governors of the Federal Reserve System. Part 4: What is the purpose of the Federal Open Market Committee (FOMC)?part-a: What is the relationship between the price level in a country and the value of money in that country? part-b: What is the impact of an expansionary monetary policy (such as a central bank lowering required reserve ratios) on the inflation rate and the value of money? What is the impact of a contractionary monetary policy (such as a central bank increasing required reserve ratios) on the inflation rate and the value of money? part-c: What is the classical dichotomy of nominal and real variables? How is the classical dichotomy related to the neutrality of money? part-d: Why is inflation referred to as a tax on holding money? part-a: What is the relationship between the price level in a country and the value of money in that country? part-b: What is the impact of an expansionary monetary policy (such as a central bank lowering required reserve ratios) on the inflation rate and the value of money? What is the impact of a contractionary monetary policy (such as a…Which of the following is the role of the Federal Reserve System? Select one: a. Set the Required Reserve Ratio for Bank of America b. Manage the account for South Carolina and other state governments c. Make loans to local businesses d. Print new money e. All of these are roles of the Fed
- Open market operations mean that the Fed is buying\selling government securities. This means that if the Fed wants to increase the money supply, it should ⒸBuy bonds. Sell bonds. Decrease taxes. Decrease government spending QUESTION 7 Consider the market for automobiles. Suppose consumer income decreases dramatically while simultaneously there is global shutdown that increases the cost of producing automobiles. In this situation we would expect, Price of automobiles to fall and the quantity sold to increase. O Price of automobiles to either increase or decrease and the quantity sold to fall. Price of automobiles to fall and the quantity sold to either increase or decrease. None of the above QUESTION 8 Which of the following is an example of an automatic stabilizer? O Increases in the interest rate. Unemployment insurance and welfare. O Automatically varying reserve requirements that differ by Federal Reserve Bank Region B and C.1) Why does the Federal Reserve rely on Open Market Operations the most to influence the money supply? ( Max 200 words) 2) Why would the Federal Reserve rarely change the Required Reserve Ratio? ( Max 200 words) 3) How do expansionary actions by the Federal Reserve increase the money supply? ( Max 100 words) 4) How do contractionary actions by the Federal Reserve decrease the money supply? ( Max 100 words) 5) Can monetary policy fix economic shocks? ( Max 200 words)Suppose the federal funds rate is not close to zero, risk spreads are roughly constant so that different interest rates rise and fall together, and banks are not holding many excess reserves. Federal Reserve open-market operations are done mostly in Treasury bills. Such economic conditions are referred to as “normal times.” Part A: Suppose the Federal Reserve implements an expansionary monetary policy by _______ (buying or selling) bonds through open-market operations. The following graph shows the demand and supply of bank reserves. On the graph, show the effect of the Fed's expansionary monetary policy by shifting one or both of the curves. As a result of the Fed's expansionary policy, the interest rate _______ (falls or rises) to ______(10%, 6%, 2%, 12%, 8%, 4%) Part B. Investment is one component of total spending. The following graph shows the demand for investment. Use the information from the previous graph to show the short-run effect of the Fed's…
- 41) The current chairman of the Federal Reserve System is A) Milton Friedman. B) Alan Greenspan. C) President Obama. D) Ben Bernanke. 42) The chairman of the Federal Reserve's Board of Governors A) controls the agenda of the Federal Open Market Committee meetings. B) is the main point of contact between the Fed and the President of the U.S. C) receives frequent background briefings on monetary policy issues from a large staff of economists and technical experts. D) All of the above answers are correct. 43) Most of the day-to-day power in monetary policy decisions lies with A) the President of the United States B) the Senate Banking Committee C) the chairman of the Board of Governors D) large commercial banks 44) On the Fed's balance sheet, assets include A) depository institutions deposits at the Federal Reserve and loans to depository institutions. B) U.S. government securities and loans to depository institutions. C)…1 **************** 1) Consider the US Federal Reserve System and compare it with another central bank in a major country, such as the Bank of England, the European Central Bank, the Bank of Japan, the Reserve Bank of India, etc. a)What are two features, characteristics, or practices of the second central bank that you chose to compare with the FED that are very similar to the FED? b)What are two features of that central bank that differ significantly from the FED? Explain. P.S. CHOOSE BANK OF JAPANWhich of the follow are the main jobs of the Federal Reserve? (Check all that apply) A. Conduct Monetary Policy B. Serve as lender of last resort to commercial banks C. Issue currency D. Provide banking services to the U.S. government E. Supervise and regulate our financial institutions