Tag: Financial system

What similar problems of the availability of cash and credit might new digital currencies such at Bitcoin solve? If money and financial instruments evolve, what kind of money is best for our society going forward?

FIN WK 1

Additional readings (not required, but recommended by the case study’s author)

Michener, R. (2011, January 13). Money in the American colonies. Retrieved from http://eh.net/encyclopedia/money-in-the-american-colonies/
Schweikart, L. (2001, January 1). The non-existent frontier bank robbery. Retrieved from https://fee.org/articles/the-non-existent-frontier-bank-robbery/

Did it matter to frontier stores that the American dollar was backed by gold? Was there a backstop holding the financial system together?

Considering that local stores and home-grown banks can organically develop and create their own forms of credit, what good is a national currency, or attempts to connect financial markets beyond the immediate area?

What similar problems of the availability of cash and credit might new digital currencies such at Bitcoin solve? If money and financial instruments evolve, what kind of money is best for our society going forward?

Write a 350- to 700-word analysis of 1 of the following corrective actions taken by the Federal Reserve as a result of the crisis:

Federal Reserve and the Great Recession Analysis

Use the following topic related to the Great Recession:

Subprime mortgages and derivatives, bailout of FNMA, Freddie Mac and AIG

Write a 350- to 700-word analysis of 1 of the following corrective actions taken by the Federal Reserve as a result of the crisis:

Quantitative easing
Purchase of toxic assets from financial institutions
Paying interest on reserve balances

Address the following in your analysis:

Actions taken by the Federal Reserve to mitigate the crisis
How the corrective action helped to restore stability to the financial system
How the corrective action should prevent recurrence of a similar crisis

Note: Use of charts and graphs is encouraged with appropriate citations. Any charts or graphs retrieved from the Federal Reserve Bank of St. Louis FRED website may only be included when the data sources used by FRED are US government sources such as the Bureau of Economic Analysis or the Bureau of Labor Statistics.

Cite at least 2 academically credible sources.

Format your assignment according to APA guidelines.