Assignment:
Part 1
After studying this chapter Federal Reserve system, you should be able to do the following:
1. Discuss how the Federal Reserve System (Fed) responded to the recent financial crisis and Great Recession.
2. Identify three weaknesses of the national banking system that existed before the Federal Reserve System was created.
3. Describe the Federal Reserve System and identify the five major components into which it is organized.
4. Identify and describe the policy instruments used by the Fed to carry out monetary policy.
5. Discuss the Fed's supervisory and regulatory functions.
6. Identify important Fed service functions.
7. Identify specific examples of foreign countries that use central banking systems to regulate money supply and implement monetary policy.
Part 2
After studying chapter Policy Makers and the Money Supply, you should be able to do the following:
1. Describe the U.S. national economic policy objectives and possible conflicts among these objectives.
2. Identify the major policy makers and describe their primary responsibilities.
3. Discuss how the U.S. government influences the economy and how the government reacted to the 2007-09 perfect financial storm.
4. Describe the U.S. Treasury's cash and general management responsibilities.
5. Describe the U.S. Treasury's deficit fi nancing and debt management responsibilities.
6. Discuss how expansion of the money supply takes place in the U.S. banking system.
7. Summarize the factors or transactions that affect bank reserves.
8. Explain the terms monetary base, money multiplier, and the velocity of money and their relationships to the money supply.