SUMMATIVE ASSIGNMENT

What gives money value?

How many or few money that are around it. In my own opinion,
people gave it the value that it has today. The good and services increase
the value of a money.
What is the structure of the Federal Reserve System?
There are three parts of the federal reserve system:
1- Federal Reserve Banks: there are 12 regional banks and each covered
a region or district of the U.S.
2- The board of governors: At the top, we have seven governors
appointed by the U.S president and confirmed by the senate to fourteen
years nonrenewable terms.
3- The Federal Open Market Committee (FOMC): there are twelve
members which include all seven governors.
What are the functions of the Federal Reserve System?
- Conducting the nations monetary policy by influencing money and credit
conditions in the economy in pursuit of full employment and stable prices.
- Supervising and regulating banks and other important financial institutions
to ensure the safety and soundness of the nations banking and financial
system and to protect the credit right of consumers.
- Maintaining the stability of the financial system and containing systemic
risk that may arise in financial markets.
- Providing certain financial services to the U.S government, U.S financial
institution, and foreign official institutions, and playing a major role in
operating and overseeing the nations payments systems.
What are the methods used by the FED to regulate the nations money
supply and expand or contract the nations economy?
The FED manage the U.S budget and make sure that U.S pay the
money with interest that they borrowed from the other countries on time.
They also make sure that each part defense, social security get their
money and have no problem of money. They manage the U.S economy by
a year , to make sure that the U.S wont have an economy problem.
How may have the FED contributed to the housing bubble?
The FED kept its policy interest rate, the federal funds rate, below the
natural or neutral interest rate for an extended period.