case #4.pdf - Question for Part I 1. The list on the screen...

Question for Part I
1. The list on the screen identifies the items that are added to M1 to get M2. (The
items are repeated for different dates and for seasonally adjusted and not seasonally
adjusted. Also, some of the items are totals of some of the others.) List 2 of these
items that are included in M2 (Do not select “M2 Money Stock” or “M2 Own Rate).
Describe/define what they are.
2. What is the latest value for M2? How much has it changed over the last 20 years
(calculate % change)?
Question for Part II
1. Describe the actions taken (if any) by the FOMC as reported in each statement.
Explain the reasoning behind the FOMC’s actions (or lack thereof) as reported in each
statement.
2. What effects do you think the FOMC’s policy decisions will have on M2 and why?
Explain.

If risks materialize that could obstruct the Committee's goals, the Committee would be prepared