Instruments of monetary policy
describe the three major instruments of monetary policy and the effect on short run vs. long run output in an economy.
How does the Federal Reserve Bank control the quantity of credit?
describe how the Fed through its policies and tools, affects overall prices, output, employment, and interest rates?
Prepare a Federal Reserve Bank balance sheet using the following data:
1) $100 Billion of Federal reserve Notes
2) $42 Billion of deposits including Member bank Federal Reserve Notes
3) $12 billion of Gold certificates
4) $110 Billion of U.S. Government securities
5) $5 billion of discount, loans, and acceptances
6) $10 Billion of miscellaneous debts
7) $28 billion of other assets
8) $?? Capital accounts
When the Federal Reserve Banks buy $10 million of government bonds from the public, describe the initial impact on the balance sheets of the Federal Reserve Banks and the Commercial banks.