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Please answer the following questions using chapter 14 from the following book- Hubbard, R & O’Brien, A. (2015). Macroeconomics. Boston: Pearson.
This is due TONIGHT!
Write a short history of the Federal Reserve (FED). Explain how it operates in the United States. What is the function of the FED? How does the FED support the banking system of the United States. What are the FED’s three monetary policy tools?
Describe how a bank increases the money supply. Explain what are a discount loan, a discount rate, and excess reserves. Explain what are required reserve ratio, required reserves, and reserves. Explain what a bank panic and a bank run are. Give an example of how a bank panic happens and when it happended last.
In reading the chapter what was the one point that you found particularly interesting? Give an example of your idea in the current economy. Explain why?
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