Describe six primary functions of the central bank

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Reference no: EM131110119

1. List and describe six primary functions of the central bank

2. What is the equation of exchange? What are the variables, which are in it, and how do they relate to each other?

3. Outline to the policy choices for contractionary and expansionary options of the Fed.

4. You have the assignment of making a recommendation to the Chairman of the Fed during a period of persistent, high inflation. What could you do to restore stable prices?

5. How will an expansionary monetary policy affect the GDP when the economy is at less than full employment? At full employment?

6. Explain how interest rates and the price level can affect the demand for money.

7. Why is the change in reserve requirement not frequently used to control the supply of money?

Reference no: EM131110119

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