QUESTION 7 To answer the question below, go to Course Documents at Blackboard and, under HW 4 material, locate the handout entitled Chapter 1: Overview
QUESTION 7 To answer the question below, go to Course Documents at Blackboard and, under HW 4 material, locate the handout entitled "Chapter 1: Overview of the Federal Reserve System" According to this article, the Federal Reserve performs five key functions. Select those five areas from the list below (note that there is no partial credit for this problem, It's either all correct or all wrong): [a. conducting the nation's monetary policy ()b, promote the stability of the financial system by seeking to minimize and contain systemic risks Ijc print the currency and coins necessary for exchange to occur within the economy )d, promotes the safety and soundness of individual financial institutions De. foster payment and settlement system safety and efficiency through services to the banking industry and the U.S. government f. promotes consumer protection and community development )g set taxes on households and business that allow the Federal Government to create a more equitable income distributionQUESTION 9 Go to Course Documents and under HW 4 material, locate the handout entitled "Chapter 2 Monetary Policy and the Economy". This is a file that discusses the operations of the Fed, Use the article to answer the question below, According to this article, when we consider how Monetary Policy affects the economy, how does the Fed manage to "exercise considerable control over the federal funds rate ? O a. by decreasing the availability of credit when the economy is in need of stimulus O b. by increasing or decreasing the printing of money O c. by setting market interest rates at vanous financial institutions Old. through appropriate changes in the discount rate during economic fluctuations Ofe through influence over the supply of and demand for balances at the Reserve Banks Of. by fixing the exchange rate at a level that allows for smooth changes in the money supply
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