Chapter 5

1. What is the current or projected state of the economy?

2. What policies the Fed is or will undertake to address issues facing the economy?

3. How should or must financial institutions react to Fed's policies?

4. How Fed's policies will impact financial institutions lending and credit policies?

5. In what ways financial institutions strategies may conflict with Fed's strategies and policies? 6. In what ways consumption, saving, and capital investments may conflict with monetary policy?