Use powerpoint to answer below questions. 1. List and briefly describe the four main responsibilities of the Federal Reserve. 2. What is the FOMC, who serves on the committee and what important decision does this committee make that affects every American? 3. What are the three possible goals of central bank monetary policy? Is it possible that a central bank that aims at more than one goal could face conflicts between the two goals that it is considering? Explain. 4. Describe in only a few sentences the central idea behind monetary policy. 5. Describe a central bank’s role as lender of last resort during a financial crisis. 6. The financial crisis of 2007-09 resulted in immediate action by the Fed to cut interest rates. Two or three months later some economic commentators complained that the Federal Reserve’s policies had obviously failed to turn the economy around because things were still getting worse. Was this a fair complaint against the Fed? Why or why not? 7. Decide if the following statement is true or false, and explain your choice: “the advantage of monetary policy is that it always works: a rise in rates reduces spending and growth of GDP, and a fall in rates increases spending and growth of GDP”.
Report what value ? would have to be in order for your decision to be reversed. …
Report what value ? would have to be in order for your decision to be reversed.
