Reference no: EM132405697

Now we turn to Monetary Policy. Just as with Fiscal Policy, Monetary Policy has measures intended to both grow or slow the economy. The main differences is that Monetary Policy is a tool of the banks, and NOT elected officials. It is important that you all understand the role of the Federal Reserve Bank, and how the Fed both governs and sets policies for all banks. Also understand how and why the Fed's 3 tools can impact the economy; 1) change interest rates, 2)change the reserve ratio, and/or 3) buy or sell Treasuries (Bonds).

Discuss and answer any questions related to Monetary Policy. Again, you should understand the three tools, how they work, and how they either grow or slow the economy.