Federal Reserve 1

Federal Reserve

University of Phoenix

ECO 212

Federal Reserve 2

The Federal Reserve is responsible for setting the nation's monetary policies. This need for this extends to help battle unemployment, help regulate pricing, as well as regulate interest rates. While this sounds easy in theory, there are many steps leading to these regulations being both defined and implemented. What is money? How does it affect not only trade, but other aspects o the nation and its citizens' financial health?

In order to begin, one must first understand just what money is, and what purpose it serves. Money, by definition, is "any circulating medium of exchange, including coins, paper money, and demand deposits." (). Before money as an actual, tangible form of...