Functions Of The Fed

Dear Students,

Please, create a thread titled Original Post inside the forum. Later, reply to at least two other threads.

Please carefully research your answers using the textbook, lecture videos, and other sources.


After completing learning activities answer the following questions in complete sentences.

  1. What Pro’s and Con’s do you envision coming from one Global Central Bank (list and discuss)? Given your reasoning should there be one Global Central Bank?
  2. How is money supply growth affected by an increase in the reserve requirement ratio? Assume that the reserve requirements ratio is 5%. How much the money supply will increase after the injection of $100 million?
  3. Do you think that large financial institutions should have been rescued by the Fed during the Sub-Prime crisis?