Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help reply to these two students posts : Post 1 Sean Chahil posted Mar 23, 2024 11:37 PM Subscribe Overseeing and controlling financial institutions

Please help reply to these two students posts :

Post 1

Sean Chahil posted Mar 23, 2024 11:37 PMSubscribe

Overseeing and controlling financial institutions and their operations. The Federal Reserve oversees the effects of individual financial institutions on the overall financial system and works to ensure their safety and soundness. By exchanging bonds for cash from the general public when the Fed purchases bonds on the open market, it expands the amount of money available in the economy. On the other hand, when the Fed sells bonds, it takes cash out of the economy in return for bonds, which reduces the amount of money in circulation.

The Federal Reserve purchases bonds on the open market and exchanges them for cash from the general public, expanding the amount of money in the economy. On the other hand, when the Fed sells bonds, it takes cash out of the economy in return for bonds, which reduces the amount of money in circulation.

The country's monetary and financial system is secure, adaptable, and stable thanks to the Federal Reserve, the US central bank.The Federal Reserve, also known as the Fed, is the most influential financial organization in the country and possibly the entire globe. Establishing interest rates, controlling the money supply, and overseeing financial markets are some of its primary duties. By controlling the level of short-term interest rates and affecting the cost and availability of credit in the economy, the Federal Reserve implements the country's monetary policy. Monetary policy has a direct impact on interest rates, and an indirect impact on wealth, stock prices, and exchange rates.

Post 2

Jazmine Long-king posted Mar 20, 2024 11:52 AMSubscribe

Hello BU204,

Using NPRs Planet Money as my resource, I found the article "Bitcoin hits a record high. Here are 4 things to know about this spectacular rally". This article was a good read for me as I have become more interested in bitcoin itself as I recently purchased a few shares. I should have been more responsible and research before purchasing, but we all live and learn. In reading this article, I learned that the investors could invest in bitcoin without owning it directly. I was under the impression that if you invested or purchase something you are the direct owner. This does relate to me personally as I recently invested in bitcoin without knowing ALL possible risk that come behind it. This new knowledge relates to macroeconomic measures involved in how the Federal Reserve System impacts the entire economy by having higher interest rates. Wall Street is in hope that the Federal Reserve will become comfortable enough with the progress of fighting high inflation that they will lower interest rates. Lower interest rates prompt investors to invest in riskier assets (Gura, 2024). Federal Reserves policies are affecting investors as they fear the purchase of riskier assets due to raised interest rates and could slow the progression of growth in the economy. I think lowering of interest rates could benefit everyone if properly done as far as, how much they are lowered, when, and at what pace.

Educationally, Jazmine

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Macroeconomics

Authors: N Gregory Mankiw

8th Edition

1305971507, 9781305971509

More Books

Students also viewed these Economics questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago