Blog

 For this assignment, use the information presented in the textbook and the Fed’s website ( http://www.federalreserve.gov/ ) when addressing the questions below.

• What are the requirements for something to be considered money? Why does the dollar have value?
• What does the money supply consist of and what are the respective amounts in the total money supply for the United States?
• What are the primary functions of the Fed? What role does the Federal Open Market Committee (FOMC) play in our economy?
• What role do the financial institutions (commercial banks and other institutions) play in our financial system?
• What is meant by the term “fractional-reserve banking” in our system? What are the implications for consumers?
• What are the tools available to the FED for controlling the money supply? Which are used most often? Which are most effective?
• How does the money multiplier help to determine the effects of monetary policy?
• What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices?

Deliverables:

• Prepare a 5-6 page Microsoft Word document that addresses the above-noted concerns and meets APA standards.
• Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.
• Submit the summary section as your initial post in the Discussion Area by the due date assigned. Include the full report as an attachment to your posting.
• Continue your discussions until the end of the week by commenting on at least two other submissions by your peers, identifying the strengths and weaknesses of each post.
• All submissions must be original and all resources must be properly acknowledged.