Question

Macroeconomics, Please, I need these bedone right away. Thank you

Lecture 1: Origins and Mission of the Federal Reserve

Questions:

1. What are the policy goals or objectives of the â??Fedâ???

2. What are (or were) the policy tools of the Fed?

3. What is the Chairmanâ??s view of financial panics?

4. What is meant by the â??lender of last resortâ???

5. What is Bernankeâ??s view of what caused the Great Depression of the

1930â??s?

6. What does Bernanke see as the â??policy errorsâ?? of the 1930s?

7. What is the back story of Bryanâ??s â??cross of goldâ?? speech and the

Wizard of Oz?

Lecture 2: The Federal Reserve after World War II

Questions:

1. What is the mission of a central bank?

2. What was the â??Accordâ???

3. What is the Chairmanâ??s view of â??The Great Inflationâ???

4. What is meant by the â??Great Moderationâ???

5. What is Bernankeâ??s view of the prelude to the financial crisis?

6. What does Bernanke see as the â??policy errorsâ?? of the 1930s?

Lecture 3: The Federal Reserveâ??s Response to the Financial Crisis

Questions:

1. What are the main tools of central banking?

2. What was the role of â??subprime mortgagesâ???

3. What is the Chairmanâ??s view of the crisis as a classic â??financial

panicâ???

4. What was the policy response to the panic?

5. What were the Fedâ??s actions during the panic?

6. What were the consequences of the crisis for the â??economyâ???

Lecture 4: The Aftermath of the Crisis

Questions:

1. What did the Fed do to restore financial stability and strengthen the

banking system?

2. What was monetary policy during the crisis?

3. What are â??Large-Scale Asset Purchasesâ???

4. What is Bernankeâ??s view of monetary policy communication?

5. What was the view of the â??Economic Recoveryâ???

6. What are the former Chairmanâ??s â??Conclusionsâ???

Answer 1

Answer 1:

1. The Congress has directed the Federal Reserve to take change of the monetary policy and has specified three specific goals for the Federal Reserve:

a. Maximum Sustainable Employment

b. Stable Prices

c. Moderate long term interest rates

Answer 2:

In order to achieve its objectives, the Fed has following tools with itself:

a. Discount Rate or the rate at which it lends to commercial banks.

b. Reserve Requirements which defines the minimum amount of reserves that banks have to keep with the Central Bank.

c. Open Market Operations: The Fed can purchase or sale bonds in the open market to influence the level of money supply in the economy.

d. Interest on Reserves -Central bank also provide interest on the reserves that commercial banks keep with Central Bank.

Answer 3:

Financial panics are mainly caused due to pessimistic business sentiment in the economy which reduces the level of investment demand in the economy and reduces aggregate demand which in turn reduces National Income in the nation.

Answer 4:

When commercial banks are experiencing hard times and have difficulty in getting loans or have liquidity issues, then the best option available with them is to get loans from the Central Bank and thus Central Bank is known as the Lender of the Last Resort.