Watch the attached video then click on the above link “The Fed ” and post a response to each of the bullets below.
- What is the mission, or goals, of the Fed?
- Explain the structure of the Fed and the hierarchy of governance.
- Is the Fed a public or private entity? Who owns the Fed?
- If issuing Federal Reserve Notes stimulates the economy, why not print money indefinitely?
- Under what conditions would the Fed purchase securities like U.S. treasuries?
- How does the Fed regulate and supervise banks and why is this important?
- What services does the Fed provide to our country’s financial system and how did it come to be known as the “Bankers Bank”?
- Visit the debt clock website at http://www.usdebtclock.org/ (Links to an external site.) and locate the category M2. This is the present money supply in the hands of the public. Using a timer determine how much the money changes in 1 minute. Is it increasing or decreasing? What do you think this means for the overall economy?
- After you post your narrative, reply to at least two other students comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree.