Question

Watch the attached video then click on the above link "The Fed " and create a thread with at least one page answering and explaining the following:

• 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.

Answer 1

The mission or goal of the Fed is to regulate the financing system of a U.S.A.GovernmentThe

The Fed consists of two parts:Board of Governors,a centralized authority and 12 Federal Reserve Banks,a decentralised authority.It has other 3 parts:Federal Open Market Committee, other private U.S. banks and advisory councils.

The Fed is partly owned by private and partly owned by public.Nobody can own the Fed.

Not print money is indefinitely because it increases the cash in the economic system and caused inflation.

The Fed purchases the securities like U.S. treasuries to push the money supply in the economic system.

The Fed is a regulatory body of the economic system.It regulates the banks so as they can provide an equitable services to the customers.

The Fed is the bank of the banks.It provides loans to the concerned banks and also deposit their cashes.It also regulates the money supply in the financial system by introducing different money policy.