A. The Federal Reserve has a great deal of control over bank policies and the interest rates that banks pay to borrow money. Over time we have seen the Federal Reserve adjust policies to impact the economy, whether to improve it or slow it down. Although we tend to think in terms of interest rates, the implications of changes have a much broader impact on society.

What are the societal implications of the Fed's monetary policies on the world economy? Give examples of cause and effect. Include the positive and negative societal implications of changes in the Fed's monetary policy decisions.

B. 1. Discuss the importance of the financial markets to the U.S. economy. Can primary markets exist without secondary markets? Explain.

2. What is the role of the SEC in the regulation of securities markets? Do they have too much control in your opinion? Why or why not?