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Macroeconomic Impact on Business Operations
The Federal Reserve System (the FED) is the Government agency that oversees and regulates the U.S.'s money supply. Its primary purpose is to balance the supply of cash and credit with the needs of the Nation's economy. The Fed consists of 12 Federal Reserve Banks and an eight member Board of Governors. (The Federal Reserve Bank of St. Louis [FRBSL], 2006, p. 5) The Board utilizes three tools to influence the money supply in the US, Open Market Operations, the Discount Rate, and Reserve Requirements. (McConnell & Brue, 2005, 242)These tools influence the amount of money created and distributed in the economy, create balance between economic growth, low inflation, and a reasonable rate of unemployment. This paper will attempt to demonstrate how money is made, the history of the FED, how the FED pulled the US out of the recession following the Stock Market bubble, and 9/11 attacks, and present criticism of the FEDS actions.
History of......
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Title: Macroeconomic Impact On Business Operations
Approximate Word Count: 1926
Approximate Pages: 8 (250 words per double-spaced page)
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