Economics Questions

Each Response has to be at least 200 words Question #1 Write a short history of the Federal Reserve (FED). Explain how it operates in the United States. What is the function of the FED? How does the FED support the banking system of the United States? What are the FED’s three monetary policy tools? Question #2 Describe how a bank increases the money supply. Explain what are a discount loan, a discount rate, and excess reserves. Explain what are required reserve ratio, required reserves, and reserves. Explain what a bank panic and a bank run are. Give an example of how a bank panic happens and when it happened last. Question #3 In reading the chapter what was the one point that you found particularly interesting? (The Quantity Theory Of Money) Give an example of your idea in the current economy. Explain why?

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