Discussion Forum assignment -Federal Reserve
Our OER textbook tells us: “In making decisions about the money supply, a central bank decides
whether to raise or lower interest rates and, in this way, to influence macroeconomic policy, whose
goal is low unemployment and low inflation. The central bank is also responsible for regulating all or
part of the nation’s banking system to protect bank depositors and insure the health of the bank’s
balance sheet” (p. 570).
Please refer to this brief history of the Federal Reserve that traces the Fed’s earliest beginnings,
through the Woodrow Wilson presidency, and to modern times, to become familiar with the
development of the Fed’s powers and responsibilities:
(https://www.federalreserveeducation.org/about-the-fed/history)
https://www.federalreserveeducation.org/about-the-fed/history
Now please listen to this brief video on the same topic – the history of the Federal Reserve system. I
am very sure you will be intrigued … and probably a little disturbed by what you see and hear.
The Federal Reserve Explained In 7 Minutes (https://www.youtube.com/watch?v=j282JKnmeVo)
(https://www.youtube.com/watch?v=j282JKnmeVo)
The Federal Reserve is a very, very powerful organization. It is charged with the responsibility to
oversee the nation’s money supply, and see to it that policies are enacted that maintain economic
stability, that attract foreign investment, and promote economic growth.
Prompt:
After reading Chapters 27 and 28 of our textbook – and carefully considering the materials presented
in this prompt, please address one of the following topics related to the Fed and its responsibilities.
Feel free to correlate what the textbook says about the Federal Reserve to what you learned in these
sources.
Explain why you think the Federal Reserve Bank tracks M1 and M2.
OR
List and explain each of the three traditional tools the central bank has for controlling the money
supply. Which is the most popular? Why?
Discussion Forum Instructions:
WHAT: You will be writing three or more discussion posts per week. Your main post must be two to three substantive
paragraphs 150+ total words and include at least one APA-formatted citation/reference. Please follow up with two
subsequent replies to colleagues. Each reply should consist of a relevant paragraph containing 50 words or more.
WHY: Discussion questions are designed for you to demonstrate your knowledge and understanding of the weekly
material. This forum provides an opportunity to develop ideas and concepts with your instructor and peers. This
discussion format assists with development of communication skills and critical thinking necessary for success in the
modern workplace.
HOW: Your posts should be substantive, demonstrate independent thought relevant to the topic, and encourage
continued discussion. Please avoid simply repeating previous posts and agreeing. Provide supporting evidence for your
ideas and opinions through the use of personal or work examples, relevant articles or websites, or concepts covered in the
week’s readings. Best practice: compose and save your discussion post in a word processing document, then copy and
paste it into the Discussion Forum.
WHEN: For full credit, your first post must be made by Wednesday at 11:59 p.m. (MT), and you must post the remaining
two before Saturday at 11:59 (MT). You are expected to participate in the ongoing discussion on at least two different
days during the week.
