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The Role of the Fed in the U.S. Economy In order to receive full credit for this discussion, you need to (1) study Module 7 (and Module 5, the part that discusses the financial system in the U.S.);...

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The Role of the Fed in the U.S. Economy

In order to receive full credit for this discussion, you need to (1) study Module 7 (and Module 5, the part that discusses the financial system in the U.S.); (2) watch the video below; (3) post an answer of at least 100 words to ALL of the three questions below; and (4) post a substantive response of at least 50 words to a comment on this discussion board posted by another student. A substantive response is more than just saying you agree or disagree. Explain why.

Supplemental Material forModule 7 and 5:

The Fed Today(Links to an external site.)The Fed Today

Hosted by radio and television news veteran Charles Osgood, this video gives an overview of the Federal Reserve System from its founding in 1913 to the technological innovations of 21st century banking. The viewer learns about the history and structure of the Fed, the role it plays in forming and implementing monetary policy, its function to supervise and regulate member banks, and the variety of financial services the Fed provides. This material is intended to supplement, but not replace the material in Modules 7 and Module 5 that discuss the role of the Fed in the U.S. economy, which you need to answer the 3 main questions below:

Discussion Questions:

1) Describe the main goals of the Fed today (mostly discussed in Module 7, not in the video). 2) Describe what are the main tools the Fed uses to conduct its monetary policy (primarily discussed in Modules 7 & XXXXXXXXXXLast, describe some of the main financial services that the Fed provides for the banking system (mostly discussed in the video).

Answered Same Day Oct 27, 2021

Solution

Komalavalli answered on Nov 14 2021
143 Votes
Main Goals of Fed Today:
Federal government has dual goals, they are 1.To achieve stable prices in the nation and 2.To achieve maximum employment. Fed keeps a track on output gap, because a positive output gap leads to a inflation rate and negative output gat results in unemployment. Therefore Fed tries to minimize output gap to achieve maximum employment rate. It also keep an eye on core inflation rate to stable prices in an economy.
Main tools Federal uses to...
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