Textbook Questions Analyze How The Money Multi Plier Facilitates The Creation Of Money By The Banking System.

1648 words - 7 pages

Textbook QuestionsnameECO/372: MacroeconomicsdateinstructorTextbook QuestionsChapter 28 of Economics by Colander (2008) is Monetary Policy. Monetary policy is "a policy of influencing the economy through changes in the banking system's reserves that influence the money supply and credit availability in the economy" (Colander, 2008, p. 666). In this paper, I will provide a question and answer format for web questions one and two from chapter 28.Web Question One1a. Who is the chairman of the board? For how long has he or she served?The Chairman of the Board of Governors of the Federal Reserve System is Ben S. Bernanke. Dr. Bernanke is serving a second term as Chairman of the Board and has served as Chairman since February 1, 2006. Dr. Bernanke has also served as a member of the board of Governors from 2002 to 2005.1b. Who are the governors of the board?The Governors of the Board of the Federal Reserve System are Donald L. Kohn, Kevin M. Warsh, Elizabeth A. Duke, and Daniel K. Tarullo.1c. The site publishes a short biography for each governor. What experiences and/or degrees do all members have?All members have different experiences and degrees, with minor similarities. Dr. Bernanke and Dr. Kohn were the only members who received their B.A.'s and Ph.D.'s in economics. Dr. Bernanke and Dr. Kohn have also had works published. Warsh and Tarullo both studied law and have both served as advisors in presidential administrations.The main things the members have in common are that their experiences are in the areas of finance and economics.1c. What experiences and/or degrees differ among members?Ben S. Bernanke. Dr. Bernanke received a B.A. in economics from Harvard University (summa cum laude) and a Ph.D. in economics from the Massachusetts Institute of Technology. Dr. Bernanke has been an educator in the field of Economics at several institutions. He has taught at the Graduate School of Business at Stanford University, Massachusetts Institute of Technology, New York University and Princeton University (Governors of the Federal Reserve System, Ben S. Bernanke, n.d.). He also served the Federal Reserve System in various roles; member of the Board of Governors, visiting scholar, and member of the Academic Advisory Panel at the Federal Reserve Bank of New York.Donald L. Kohn. Dr. Kohn received a B.A. in economics from the College of Wooster and a Ph.D. in economics from the University of Michigan. He is the current Vice Chairman of the Board of Governors of the Federal Reserve System. Dr. Kohn "began his career as a Financial Economist at the Federal Reserve Bank of Kansas City" (Governors of the Federal Reserve System, Donald L.Kohn, n.d., para. 3). Dr. Kohn has served in various roles of the Fed; member of the Board, Adviser to the Board for Monetary Policy, Secretary of the Federal Open Market Committee, Director of the Division of Monetary Affairs, Deputy Staff Director for...

Find Another Essay On Textbook Questions Analyze How the Money Multi-plier Facilitates the Creation of Money by the Banking System.

Explaining the value of our money. It compares and contrasts how we obtained our monetary system.

582 words - 2 pages Throughout history civilizations have exchanged goods and even developed currency. Whether coins or cloth these exchanges of goods all had value to the trading partner. In modern day civilizations we use paper currency and coins. To give these objects worth we must be able to back them with something that has value.Money is a means of exchange. Money is not the exchange of one commodity for a different commodity, such as trading a bushel of corn

Money and Banking Essay

2331 words - 10 pages . Fourthly, we will analyze lessons that were learned by the Federal Government during the Great Depression that resulted in monetary or fiscal policies during the current economic crisis. Finally, we will conclude with a conversation about the main points of both economic downturn and look at the long run toward recovery. Capitalism “is an economic and political system in which a county’s trade and industry are controlled by private owners for

Banking, Money and Finance

1896 words - 8 pages and companioned by the creation of strong supranational institutions. In contrast, Asian integration has been in large measure a market-led process. Indeed, East Asia is facing institutional deficit. Although there are many regional entities that aim at promote economies, monetary and cooperation financial, they do not have the powers and authority of the Europe institutions. On the theory of optimum currency area (OCA), the relative share of

Fraudulent Banking: Where’s My Money?

1865 words - 7 pages taking a copy of a used check and making a copy of it to reproduce it using a printer. This can be quite dangerous if the criminal is successful with the copy creation, because then they have a blank copy that they can continue to print off and use illegally (“WiseGeek-Check Fraud,” par. 1-3). Check alteration is similar to forgery, but different from counterfeiting. Alteration is literally changing who the check is paid to and sometimes by how much

Money, Banking and Global Finance

1140 words - 5 pages of the budget are defense and social security. Defense spending produces little or nothing except in times of war. Judging by the current status of the United States as the only existing "Nuclear Super Power", war is not a tangible event in the near or distant future. The way social security is managed creates a huge waste. As managed, social security is money spent to immobilize a large and fairly capable part of the work force. It encourages

Lessons Learned in Money and Banking

1514 words - 6 pages the greatest safeguard to our banking system and therefore, the greatest protector of our wealth. The three most important things I’ve learned in Money and Banking are: 1. The Federal Reserve protects our economy and wealth through its role as “lender of last resort.” 2. The Federal Reserve is unique in both independence and goals. This allows it to pursue policies without bias that both safeguard the economy and promote growth. 3

You have $2,000.00 to get the best computer system you can get for the money. What system will you buy?

1735 words - 7 pages 128MB for the running of Windows XP, using this amount of RAM is likely to cause the user to experience frequent problems. Even 256MB can sometimes cause the computer to be very sluggish. The March Edition of PC Magazine Singapore recommends 512MB as the minimum for smooth running of Windows XP.It has also been said that RAM, like money, is something you can never have enough of. When the system is low on memory and the user is working on large

Department of Education: A waste of taxpayer money or a necessity to our education system?

1863 words - 7 pages regulations on certain things. For example, to become a counselor in Nebraska you must have at least two years of teaching experience whereas in Missouri you can graduate with a master’s degree in School Counseling and you can become counselor right out of college. As goes for state standards on test scores, some schools put a lot of stress on the results and they should. Schools should receive money based on how their students perform, no doubt

The Morality of Money.

1187 words - 5 pages , 2002). In this view, Enron is simply the representative of corrupt, "free market" capitalism. And the author's reaction, like the reactions of many editorialists and commentators, is disgust with "greed" and contempt for the idea that money-making might be moral. The Los Angeles Times's editorial cartoonist, Jeff Danziger, captured the feeling perfectly by depicting Enron as a house of prostitution, whose parlor is decorated with statues and

The Power of Money

1126 words - 5 pages acquire money from his luck. This is a sad tale of one child’s struggle to obtain the acceptance and love from a parent by taking any all drastic measures necessary, only to learn that no amount of money can buy happiness or love. Subsequently, the underlying need for money can affect anyone, even a small child. The power of financial stability is dangerous to toy around with; one could work their selves to death just to earn a dollar. In the

Money in America. A basic idea of how the money goes through everyone's hands

517 words - 2 pages isalready bad enough, but in a case like this, the governmentwould try to do something to prevent a long recession.The Federal Reserve bank tries to balance the economyout by influencing other banks to print up more money tomake up for the losses. This may stop the ship from sinkingall the way, but this decreases the value of the dollarbecause of the excessive amount of money in circulation.The dollar is less valuable on our own market, so pricesrise

Similar Essays

Money, The Federal Reserve System, And Banking

722 words - 3 pages Money, the Federal Reserve System, and Banking You have used money to measure the price, the size of business, total output in the economy, and income. Coins and paper money are called currency. People use currency daily. When you go to a movie, you probably buy a ticket with currency. Coins and paper money work well for small purchases and when payment is made directly from one person to another. But, for large purchases or when

Money & Banking Essay

1005 words - 4 pages relax its current tightened credit policies. This also cannot force the public to borrow the excess money being supplied. Next we can look at the utilization of the open market operations. Since we are facing sluggish spending the "Fed" could buy securities from the banks causing an increase in lonable funds. This tool like the proceeding one would have similar effects. Injecting the banking system with more money does not necessarily

Money And Banking The Effect On The Poor

598 words - 2 pages The exploitation of America's poorThe exploitation of the poor and elderly is an age-old social problem that is being taken to disturbing extremes by some of America's biggest conglomerate companies. In the article, "Fringe banks exploit the poor" written by Michael Hudson, Hudson reveals some of the United States larger corporations Ford, ITT Corp, Fleet financial services, Citicorp, And American Express have been the benefactors of aggressive

History Of Money And Banking Essay

3112 words - 12 pages government and the free market working together to get things done. Many questions should be asked such as: what is the history of money and banking in the United States? What has proven sustainable monetary policy and how all this either helped or harmed by government involvement? These are important questions on the future of the United States. In the words of John Maynard Keynes, “The ideas of economist both when they are right and when they are