The Fed

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?

Sample Solution