The Fed Structure and Hierarchy of Governance Discussion

Description

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. ( I do need help on the comments and I will 2 post provide this. It should very short like 5 to 10 sentences only)

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

Student 1:
1. The Feds mission is to establish and maintain the public’s confidence in
our nations monetary and banking system, the mission has not
changed but it has expanded over time.
2. It is made up of two primary parts, a board of governors that guides
most of the feds policies, and twelve regional federal reserve banks
and their branches which are the operating arms that provides services
to banks and the public.
3. The fed is not owned by anyone but the twelve regional federal reserve
banks belong to a private sector.
4. Printing money indefinitely will cause an inflation and inflation can put
the whole economy at risk for a crisis.
5. If there is too much money in circulation it will sell securities and cause
inflation, this takes excess money out of circulation and help stabilize
the economy. However if there is too little money in circulation this can
lead to a recession and the feds will buy securities.
6. The feds supervise banks by keeping track of the financial records, the
potential risks of the banks investments and making sure they follow the
laws to maintain a stabilized banking system. This is important because
it ensures the public that the banks are trustworthy and are providing a
stable and healthy banking establishment.
7. The fed plays an important role in transferring funds from one bank to
another. The fed is often referred to as the “The Bankers Bank”
because of this role. The fed also has other vital roles including acting
as a fiscal agent, maintaining the US treasury accounts, facilitating the
collection of federal taxes and issuing, servicing, and redeeming
treasury securities.
8. In one minute the M2 money supply increased by about $4.7 million,
this means that the prices of goods are increasing which could possibly
lead to inflation since it is increasing so rapidly.
Student 2:
1. The mission of the Fed is that to establish and maintain public confidence in
our nation’s monetary and banking system.
2. The Fed is made up of two primary parts that are a board of governors and
12 regional federal reserve banks.
3. 12 regional federal reserve banks are in a private entity, but the fed is not
owned by anyone.
4. Printing indefinitely money happens inflation and can not maintain the goal of
the Fed’s monetary policy, so cannot print money infinitely.
5. The Fed purchases securities if there is too little money circulation which
could lead to a recession.
6. The Fed regulates and supervises banks for making sure they followed the
rules. This is important because promoting the safety and soundness of
banks and enhancing the public’s confidence in the banking and financial
system
7. The Fed provides the services that is transferring funds or payments from one
bank to another. Cash or checks and electronic transfers came to be known
as the “Banker’s bank.”
8. It was increasing. I think this means that money for the overall economy is
growing.
c

Purchase answer to see full
attachment

Explanation & Answer:
1 Page

Tags:
Economy

Structure and Hierarchy of Governance

The feds

User generated content is uploaded by users for the purposes of learning and should be used following FENTYESSAYS.COM ESSAY’s honor code & terms of service.