Question
1. Summarize the powers and responsibilities granted by the Federal Reserve Act of 1913. 2. Describe the governing structure of the Federal Reserve. 3. Identify
1. Summarize the powers and responsibilities granted by the Federal Reserve Act of 1913.
2. Describe the governing structure of the Federal Reserve.
3. Identify the current chair of the Federal Reserve.
4. Distinguish between M1 and M2.
5. Define the term monetary base.
6. Define fractional reserve banking, reserve ratio, excess reserves
. 7. Explain how the money multiplier works and also calculate it.
8. Explain the creation of money through lending.*
9. Determine the amount of money that can be created given the money multiplier.
10. Analyze the process by which the FRS controls the money supply and interest rates.*
11. Identify all the options the Federal Reserve has to increase or decrease the supply of money and change interest rates.
12. Explain the process of open market operations.
13. Define the term federal funds rate and state its current value.
1. Identify the group that conducts monetary policy.
2. Identify the tools, or instruments used, to implement monetary policy
3. Identify the appropriate monetary policy for a given aggregate demand shock.
4. Discuss the challenges the Federal Reserve faces when conducting monetary policy.
5. Identify the different lags of monetary policy
6. Compare and contrast the "rules" approach to determining monetary policy and the "discretion" approach.
7. Explain the importance of Central Bank credibility.
8. Explain why real shocks create a dilemma for the Federal Reserve.
9. Explain how monetary policy could create inflation or an asset bubble.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started