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The Fed - Applications
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These
links will help you get acquainted with the Fed's history, structure
and functions. 1. Fed
History can be found at this link: http://www.kc.frb.org/fed101/history/ 2. Learn
about the Fed structure here: http://www.kc.frb.org/fed101/structure/ 3. How does the Fed conduct monetary policy? Find out here: http://www.kc.frb.org/fed101/policy 4. Write an article for the business section of the local newspaper explaining what monetary policy is and how changes in monetary policy affect money supply and interest rates. Using this information, advise a teenager about taking out a car loan and his/her opportunities for obtaining summer employment in the construction trade when the Federal Reserve is contracting the money supply. 5. Play
the roles of the Federal Open Market Committee and decide for each of
the headlines below whether they would recommend an expansionary policy
or a contractionary policy and whether government securities should
be purchased or sold, by the Fed in the open market.
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