I'd Like To Alter The Assignment As Noted In Wednesday Revie
Id Like To Alter the Assignment As Noted Wednesday Review Ted Talk
I'd like to alter the assignment. As noted Wednesday, review "Ted talks - what gives a dollar its value and go to the Federal Reserve site, thefederalreserve.gov and answer the following: What is the Federal Reserve? What are its goals and role? Who owns the Fed? Explain the following Federal Reserve tools: 1. open market operations, 2.discount rate and 3.reserve requirements. This should be submitted at class or via e-mail if you wish. The additional assignment will be to watch a Fed YouTube clip and provide analysis. This will be provided later today. You will find this clip extremely interesting, informative and noteworthy.
Paper For Above instruction
The assignment requires a comprehensive understanding of the Federal Reserve System, its functions, ownership, and tools, supported by viewing relevant educational videos. First, students should watch the TED Talk titled "What gives a dollar its value," which provides foundational insights into the nature of money and its perceived value. Following this, students are directed to visit the official Federal Reserve website, thefederalreserve.gov, to research and answer key questions about the Federal Reserve's purpose, goals, ownership, and its various monetary policy tools.
The Federal Reserve, often referred to simply as the Fed, is the central banking system of the United States. It was established to provide the country with a safe, flexible, and stable monetary and financial system. Its primary goals include promoting maximum employment, stabilizing prices, and moderating long-term interest rates, which together foster economic stability and growth (Board of Governors of the Federal Reserve System, 2020). The Fed's role involves conducting monetary policy, supervising and regulating banking institutions, maintaining financial stability, providing financial services to depository institutions and the U.S. government, and facilitating the functioning of the payments system.
Ownership of the Federal Reserve is unique: it is a hybrid public-private entity. The Federal Reserve System comprises a Network of 12 regional Federal Reserve Banks owned by their member commercial banks. However, these regional banks operate under the supervision of the Board of Governors, an independent federal agency appointed by the President and confirmed by the Senate (Boffey, 2017). This structure creates a degree of independence in implementing monetary policy while maintaining accountability to Congress.
Understanding the tools of the Federal Reserve is essential. First, open market operations involve buying and selling government securities to influence the level of reserve balances and short-term interest rates in the banking system. These operations are the main tool used to regulate liquidity and control inflation (Mishkin, 2019). Second, the discount rate is the interest rate charged to commercial banks and other financial institutions for borrowing funds directly from the Federal Reserve Banks, especially during times of liquidity shortages, thereby influencing monetary conditions (Bernanke, 2020). Third, reserve requirements refer to the minimum amount of reserves that banks must hold against deposits, which impacts the amount of money banks can lend, thus affecting the money supply and credit availability (Investopedia, 2021).
In addition to these core topics, the upcoming YouTube clip from the Federal Reserve will provide further insights into how monetary policy is formulated and its impact on the economy. Analyzing this video will deepen understanding of the practical application of the Fed's tools and goals. Overall, grasping these fundamental concepts is vital for comprehending the stability and functioning of the U.S. economy.
In conclusion, this assignment aims to equip students with a nuanced understanding of the Federal Reserve's structure, functions, and instrumental tools through research and multimedia resources. Mastery of these topics will enable meaningful engagement with current economic policies and discussions about monetary stability.
References
Bernanke, B. S. (2020). The Federal Reserve and the Financial Crisis. Princeton University Press.
Boffey, D. (2017). The Structure and Independence of the Federal Reserve. Journal of Economic Perspectives, 31(3), 199-222.
Investopedia. (2021). Reserve Requirements. https://www.investopedia.com/terms/r/reserverequirements.asp
Mishkin, F. S. (2019). The Economics of Money, Banking, and Financial Markets (12th ed.). Pearson.
Board of Governors of the Federal Reserve System. (2020). Monetary Policy. https://www.federalreserve.gov/monetarypolicy.htm