Reference no: EM132541161
Assignment: Below is an ac dc videos with the 'How do banks create money" title. Your assignment is to view the video and then answer the questions listed below. Let me be very clear that single sentence answers to address the areas assigned will be heavily penalized. You are to show that you clearly understand the questions assigned and can articulate the concepts being addressed. This assignment is to be in your words not simply a restatement of the words that the author used as he wrote the textbook
1. What is money and what are the purposes/functions/conditions of money?
2. Can eggs satisfy the three conditions for money?
3. What is the basic money supply and what is the connection between the money supply and aggregate demand?
4. How do banks create money and what is your understanding of the money multiplier?
The following is an ac dc video with the 'How do banks create money" title.
Video: How Banks Create Money - Macro Topic 4.4 (By Jacob Clifford)
Now you are to view the following video on Monetary policy and then address the following questions.
1. What is your understanding of monetary policy and what is the purpose of the Federal Reserve Bank?
2. What are the tools used by the Federal Reserve Bank to enact monetary policy and who is the current Chairman? (Research needed to answer the current chair part of the question).
3. Has the Federal Reserve acted to help ease the economic impact of the Coronavirus? How? (You will need to do some research in order to answer this question.
4. Is a reduction in interest rates likely to affect spending on pizza? What kinds of spending are sensitive to interest rate fluctuations?
Video: What's all the Yellen About? Monetary Policy and the Federal Reserve: Crash Course Economics #10 (By CrashCourse)
Also present the tie in to chapter concepts. Who is the current Chair of the Fed? What is your view of the Fed with the limited amount of information that you have?
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