Federal Reserve Reflection

As we begin to approach our final weeks in Macroeconomics, I have been lucky enough to get an understanding of the economy in the United States. In the beginning of this course I was a little nervous because I never understood anything about the economy. I was nervous to take a sixteen week course and cut it in half to eight weeks. I was able to learn a lot about the country I live in and the background of the economy. There was a lot of information we covered over the last several weeks. After all the reading, the Federal Reserve system is what stood out to me the most. The federal reserve system is such an important role in the U.S economy. Most people don't have a clue of how the feds works or its future. I know I had no clue about it until

Being the most important role in our economy they have several different functions and responsibilities. The Federal Banks actually are the ones who issue out Federal Reserve Notes, these "notes" are also known as currency or money. I learned some very interesting facts about this function of the Federal reserve, depending if the bill was issued by a certain bank, the bill would be identified in the top left corner with a letter and a number. That letter and number will determine which bank it came from. I also learned that the Federal Reserve Note, also known as money, actually has a life expectancy. For an example, a five-dollar bill has the expectancy of five and a half years. When money is circulated through the Federal Reserve Bank it is actually evaluated by a hi-tech machine. After reviewing of the money, if it meets the strict qualification it continues to be circulated (Board of Governors). To continue, The Federal Reserve System has a lot of responsibilities with banks. When banks are low on money, they will reach out to the federal reserve to meet their reserve requirements. The process to get the money is no issue, however, in the end banks will be held responsible for an interest rate. This reminds me of my credit card. You are given a limit on your credit card, once you start putting money on it, you will have an interest rate. Interest is the cost of money that

It also is connected with the Monetary Policy which plays an important role in this system. The overall goals of this System and Policy is to make sure that money is constantly being stabilized. The people who work in these areas are constantly staying on top of rules and regulation that follow the system and policy. The Federal Reserve and Monetary policy is always keeping an eye on money supply. Keeping money supply and interest rates stable will create a stabilized economy. If anything happens out of sorts, such as increase in money supply, we could fall into inflation. In the beginning of this class I was nervous about it, I never understood economics. As I finish my research essay, I am happy I chose to write it on the most important role of the United States! I learned a lot before this research paper but, I most definitely learned a lot more after completing it. My favorite part of this essay was learning that money actually has a life expectancy. It's pretty neat to think that money actually has a time span and that it also is ran through a strict inspection with high- tech machines to determine if it is allowed to continue to