What are the factors that would influence the Federal Reserve in adjusting the discount rate

Informational Interview Synopsis
July 6, 2020
Resource: TMGT/540 McGraw-Hill Casebook Read the Waverider Communications case and the Ecton, Inc. cases. Select one of these cases as the basis of yo
July 6, 2020

What are the factors that would influence the Federal Reserve in adjusting the discount rate

Your boss has chosen you to give a presentation to a number of foreign officials regarding the United States Federal Reserve 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.

Develop a 10- to 15-slide Microsoft® PowerPoint® presentation.

Address the following questions and include a notes page which contains the write-up portion to each question:

  • 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 indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?