Your boss will discuss the Federal Reserve system with a number of
foreign officials to convince them of the stability of the U.S. banking
system. These officials are very interested in doing business in the
United States, but they would like to learn more about the Federal
Reserve and how it operates as compared to the official’s home
country. (Pick officials home country)
Write a 750 to 1,500 world briefing paper for your boss.
Incorporate any feedback from peer review discussion.
Address the following questions in your paper in anticipation of what the
foreign investors will need to hear:
• What are the factors that would influence the Federal Reserve in
adjusting the discount rate?
• How does the discount rate affect the decisions of banks in setting
their specific interest rates?
• How does monetary policy aim to avoid inflation?
• How does monetary policy control the money supply?
• How does a stimulus program (through the money multiplier) affect
the money supply?
• Currently, what indicators are evident that there is too much or too
little money within the economy? How is monetary policy aiming to
• What are some major differences between the Federal Reserve
System and the monetary system in the officials’ home country?
Format consistent with APA guidelines.