Principles of Macroeconomics: "Chapter 9, Section 3: The Federal Reserve System"
- Read this section and attempt the "Try It" exercises. This reading will provide additional perspectives and insight on the role of central banks and how they create and destroy money.
The Federal Reserve: "Monetary Policy"
- Read this article, which adds depth to the three tools of monetary policy and covers the difference between the federal funds rate, which is set by banks, and the targeted federal fund rate. Some of the reading describes how the Fed provides signals to the market for the purpose of stimulating economic activity and goal achievement.
John Petroff's "Macroeconomics, Chapter 12: Monetary Policy"
- Read this chapter, focusing particularly on the section titled "Open Market Operations".
John Petroff's "Macroeconomics, Chapter 12 Quiz: Monetary Policy"
- Click the "Review Quiz" link at the bottom of the page and follow the instructions to complete the quiz.
