Fed “Pressures” on the Economy

The case study for this workshop will cover various ways that the Federal Reserve can influence the economy. The Federal Reserve can use open-market operations to keep interest rates low and encourage business investment and individual consumption. The case also brings up certain questions related to Fed policy and whether or not negative externalities can arise from its actions.

Upon completion of this assignment, you should be able to:

Demonstrate how money is measured in the U.S. economy.
Describe the roles of money and the Federal Reserve in the U.S. economy.
Incorporate biblical and ethical principles into economic theory and practice.
Resources
Bible
Website: International Standard Bible Encyclopedia (http://www.studylight.org/enc/isb/)
Textbook: Economics for Managers
Websites:
Money, Interest Rates, and Monetary Policy:http://www.federalreserve.gov/faqs/money-rates-policy.htm
Currency and Coin: http://www.federalreserve.gov/faqs/currency-coin.htm
Monetary Policy and Bank Lending: www.nber.org/chapters/c8334.pdf
Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory: http://qje.oxfordjournals.org/content/115/1/147.short
The Federal Reserve in the 21st Century: http://www.newyorkfed.org/education/fed21/
Background Information
The Fed engages in open-market operations to influence the amount of reserves held by commercial banks, which, in turn, influences the federal funds rate, which is the rate banks charge each other for loans of reserves to meet their minimum reserve requirements. Banks are required to hold between 3 and 10 percent of their demand deposits as reserves, whether as cash in their vaults or as noninterest-bearing deposits with the Fed. They may also hold additional or excess reserves for clearing overnight checks or other purposes.

Instructions
Review the Case for Analysis: The Chairman’s Quandary on page 361 in the textbook, Economics for Managers.
Review the information available on the following websites:
Money, Interest Rates, and Monetary Policy: http://www.federalreserve.gov/faqs/money-rates-policy.htm
Currency and Coin: http://www.federalreserve.gov/faqs/currency-coin.htm
Monetary Policy and Bank Lending: http://www.nber.org/chapters/c8334.pdf
Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory: http://qje.oxfordjournals.org/content/115/1/147.short
The Federal Reserve in the 21st Century: http://www.newyorkfed.org/education/fed21/
Use these sites to answer the following questions:
Summarize the recent policy of the Federal Reserve concerning the level of interest rates and the reasons for this policy. Do you agree with this policy? Why or why not?
How does this policy affect the supply of and demand for products and services?
What problems can arise when interest rates are kept very low for an extended period of time? Please include historical examples (including at least one biblical example) of the impact of low interest rates and their effect on the economy.
Using the International standard Bible encyclopedia (http://www.studylight.org/enc/isb/), give an example of a currency used in the Bible and explain how the currency was used and how the supply of this currency may have affected the economy of the times.
You must incorporate a minimum of three sources in addition to the text in this assignment. Your three sources may include scholarly sources, credible newspapers, trade journals, or websites listed here. Be sure to use OCLS to find these sources.
Your entire assignment should be APA formatted.
When you have completed your assignment, save a copy for yourself and submit a copy to your instructor using the Dropbox by the end of the workshop.

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

At homeworkcheg.com, You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with at HomeworkCheg, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency