Economics Interview Script
Continue with the industry you selected in Unit II for this assignment. For this Unit VII Assignment, write a script for a radio/television show as if you were interviewing an expert concerning topics discussed in this unit. Include input from both the interviewer and interviewee standpoint. What questions would you ask as the interviewer? What answers would you give to those questions as the interviewee? When writing your questions and answers, keep in mind that you have already learned a lot about your industry through earlier assignments in this course. It is suggested that you review your responses to those assignments before beginning this one. In your interview script, address the following topics:
- the structure of the Federal Reserve,
- the functions of money,
- six qualities of ideal money,
- the tools of monetary policy used by the Federal Reserve to manipulate the money supply in the United States,
- the current status of monetary policy regarding a contractionary or expansionary stance in the United States, and
- the potential impacts on your selected industry over the next 2 years of this monetary policy stance.
Your script must be a minimum of four pages (1,000 words, double-spaced). Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.
The Federal Reserve, also known as the “Fed,” is the central banking system of the United States. It was created by Congress in 1913 in response to a series of financial panics that had plagued the country in the late 19th and early 20th centuries. The Fed is structured as an independent government agency, with a Board of Governors that is appointed by the President and confirmed by the Senate. The Fed is responsible for implementing monetary policy in the United States, which involves setting interest rates and managing the supply of money in the economy.
The functions of money are to serve as a medium of exchange, a unit of account, and a store of value. As a medium of exchange, money is used to facilitate transactions between buyers and sellers. It acts as a unit of account by providing a common measure of value for goods and services. And as a store of value, money can be saved and used to make purchases at a later time.
There are six qualities of ideal money: it should be widely accepted, easily portable, durable, divisible, consistent in value, and difficult to counterfeit. Wide acceptance means that money should be accepted by a large number of people, which makes it easier to use as a medium of exchange. Easily portable money, such as coins or paper bills, is convenient to carry and use in transactions. Durability refers to the ability of money to withstand wear and tear over time. Divisibility means that money should be able to be divided into smaller units, which allows for the exchange of smaller amounts. Consistency in value means that the value of money should remain stable over time. And finally, ideal money should be difficult to counterfeit, as this helps to ensure its value and maintain trust in the currency.