xtracredit - Amanda Thomann Econ 221 10-04-08 X-tra credit...

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Amanda Thomann Econ 221 10-04-08 X-tra credit 1. Monetary policy-A central bank’s changing of the money supply to influence interest rates and assist the economy in achieving price stability, full employment, and economic growth. 2. The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded. Today, the Federal Reserve's duties fall into four general areas: a) conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates b) supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers c) maintaining the stability of the financial system and containing systemic risk that may arise in financial markets d) providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system I would have to say that area that applies to Americas turmoil today would have to be all of hem. With this in mind, all areas are being applied in concern to the recent major bail-
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xtracredit - Amanda Thomann Econ 221 10-04-08 X-tra credit...

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