Xeco 212 Week 6 Checkpoint: Money

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Xeco 212 Week 6 Checkpoint: Money

By | October 2010
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Melissa Castillo XECO 212 Week 6 Checkpoint: Money

In 150 to 200 words, explain your reasoning for the way you are planning on using Reserve Requirements. Be sure to address the following:

1. How Reserve Requirements affect the economy

2. How your action will affect economic growth

3. Why it is important to increase economic growth

4. Your rationale for the use of Reserve Requirements

At the end of the game, you will be provided with this information to give to your instructor.

On using the Reserve Requirements, I plan on making banks hold money so that it will not be used. During inflation, this will rise, but banks will also know how much money can be used to borrow. My action to stop this would affect economic growth by substantially putting a halt on certain types of money transfers, holds, and loans. It is important to increase economic growth because unemployment levels should not be very high or very low. My rationale for the use of Reserve Requirements would be to limit the amounts of loans, transfers, or anything borrowed as much as possible. I think that if certain types of transactions were just put to a “hold” period, as much as possible, there would be more to look forward to in the economic world. When there is a brief moment in the economic matters, there could also be minimal damage to what goes on in banks.

In 150 to 200 words, explain your reasoning for the way you are planning on using the Discount Rate. Be sure to address the following :

1. How the Discount Rate can affect the economy

2. How your action will affect economic growth

3. Why it is important to slow economic growth

4. Your rationale for the use of the Discount Rate

At the end of the game, you will be provided with this information to give to your instructor.

The Discount Rate can affect the economy in ways that it will cause the interest rate to be high if the Discount rate is high. It can also affect the economy if the Discount Rate is...