Topic
The Federal Reserve
Instructions
Prepare a short essay pertaining to an aspect of the Federal Reserve. Recognize the role of the Federal Reserve and its impact on monetary policy and interest rates, influence on the stability of the U.S. financial system, and its role in establishing monetary policy and fiscal policy for the U.S. economy. In addition, actions and decisions made by the Fed and the Board of Governors impact the overall global economy, especially with respect to market interest rates, inflation, and economic activity.
For your essay, explore one of these characteristics in depth. Provide a brief analysis essay (400 words) on your topic, and cross reference using the textbook and one additional primary reference source. Briefly introduce the characteristic and focus the bulk of your essay on describing the topic impact on one or more key stakeholders. Stakeholders include individual investors, investment firms, global businesses and trade, and U.S. corporations. Use qualitative and/or quantitative data to provide support for your essay. Identify your reference sources.
Answer preview
Federal Reserve is the primary system of banking in the United States. It was formulated in the year 1913 after the US encountered some financial crisis, which inspired the US government to have central management the entire monetary system in the country. Consequently, situations like the Great Depression and the Great Recession also led to the extension of roles and responsibilities of the Federal Reserve.
Word count: 446