You need to listen to the This American Life audio clips selected from their episode titled The Invention of Money. The word counts are intended as guidelines, you are welcome to use more words but if you use fewer you risk not answering the questions in sufficient detail to receive full credit.

1. In the opening clip, reporter Jacob Goldstein is trying to understand where all the lost money went during the financial crisis. He asks his business savvy aunt Where did all that money go? and her response is Money is fiction. What does she mean by saying that money is fiction? 2. The Federal Reserve (the Fed) is the central bank of the United States with the power to create money. When the Fed decides to increase the money supply by creating more money, how do they go about doing this? What role do banks play in this process? What is it that the Federal Reserve buys and sells to achieve their goal? Where does the money come from to pay for all their purchases? 3. During the financial crisis the Federal Reserve bought mortgage backed securities. Why did they do this? How much money were they mandated to purchase these securities how far off were they?

https://www.thisamericanlife.org/radio-archives/episode/423/the-invention-of-money

(200words)