Learning Guide for Unit 5
Overview
Unit 5: Financial Crisis and Regulation
Topics:
Financial Regulation
Economic Crisis
Central Bank
Learning
... [Show More] Objectives:
Defining the Public and Private Interest Models
Understanding the causes and reactions to the Great Depression
Defining and analyzing Basel II
Defining and understanding the meaning of the Asset Bubble
Understanding the meaning and importance of the Federal Reserve System
Tasks:
Peer-Assess Unit 4 Written Assignment
Read Chapters 11,12,13 from the Textbook
Participate in the Discussion Forum (post, comment and rate)
Complete and submit Unit 5 Written Assignment
Make entries to the Learning Journal
Take the Self-Quiz
Introduction
In Unit 5 you will be introduced to the Federal Reserve System and its functions. You will learn how central banks regulate the banking system and how they manage money supply in economies. In Chapter 12 financial crises lessons are presented in order to understand the importance of the regulatory system.
Reading Assignment
Read Chapters 11, 12, 13 of the Textbook, Money and Banking (Robert E. Wright, Vincenzo Quadrini)
Video Resources
VideoVox. (2017, April 9). The role of financial regulation [Video]. YouTube.
One Minute Economics. (2020, March 29). Financial crisis vs. economic crisis: One minute explanation/comparison (definition, examples, etc.) [Video]. YouTube.
Investor Trading Academy. (2016, July 6). What is Basel? [Video]. YouTube.
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Investor Trading Academy. (2016, April 18). What is an asset bubble? [Video]. YouTube.
Written Assignment
After carefully reading all the available information found in your readings this week, prepare a two page (double-spaced) essay and answer the following questions:
Which of the monetary tools available to the Federal Reserve is most often used? Why?
Describe how expansionary activities conducted by the Federal Reserve impact credit availability, the money supply, interest rates, and security prices.
Suppose the Federal Reserve purchases $10 billion worth of foreign currency in exchange for deposit accounts at the Federal Reserve. Show the changes that result from this transaction on the Fed’s balance sheet.
Cite references to material that you use in preparing the essay.
Your essay will be graded on the following:
Mentions at least three monetary tools.
Describes how expansionary activities conducted by the Federal Reserve impacts each of these elements: credit availability, the money supply, interest rates, and security prices.
Show the changes that result from this transaction on the Fed’s balance sheet.
Used at least one example in the essay.
Organization Grading Guidelines: Presentation is very effective and presented in a logical format with a clear beginning, middle, and end. There is a clear statement of ideas and smooth transitions. The writer has stated the main idea clearly and has provided relevant details. The main idea is clearly conveyed in a presentation that is highly relevant and interesting. The student provides evidence of thoughtful input. Details are rich and appropriate. Spelling, punctuation, and capitalization are virtually always correct. [Show Less]