4.3: The Role of Banks in Finance
Read this overview of the Federal Reserve. Note that this document covers the topics outlined in subunits 4.3.1 and 4.3.2. Then, in the Exploring Business textbook, review Section 13.2 and consider the following questions as you read: What were the causes of the 2008 banking crisis? What does the FDIC do for you if you deposit your money in a bank? Are savings, loans, and credit unions part of the banking system?
4.3.1: The Role of the Federal Reserve
Re-read pages 220-223, starting under "Banking." Also, review pages 2-10 of Appendix 2. In the Exploring Business textbook, review Section 13.3: The Federal Reserve System and focus on the definition of the Fed in the first paragraph.
4.3.2: The Federal Reserve and Interest Rates
Re-read 11-18 of Leslie Lum's "Appendix 2: The Federal Reserve Today." Then, go to Section 13.3 of Exploring Business and read the text below the heading "Reserve Requirements." Consider the following questions as you read: What are the three tools used by the Federal Reserve System to regulate the money supply in the United States? How does the usage of these three tools affect you as a consumer? Who is at the head of the Federal Reserve Board?
4.3.3: The Federal Reserve's Involvement in the Recent Financial Crisis
Working independently, complete the assignment on page 245 of Introduction to Business. View the timeline and video. In an essay of 900-1200 words, answer the questions provided in the instructions.
If you wish, you may use this space to answer the textbook questions in a 900-1200 word essay.
4.3.4: The Federal Reserve's Monetary Tools
Re-read pages 220-223 from Introduction to Business , starting with the material beneath the "Banking" subheading. Then, review pages 20-26 of Appendix 2. Finally, in the Exploring Business textbook, review Section 13.3: The Federal Reserve System , focusing on the text below the heading "The Tools of the Fed."