Purchase Solution

effects of natural disasters

Not what you're looking for?

Ask Custom Question

1. What exactly is the Federal Reserve?
2. Do the effects of natural disasters, such as hurricanes, cause inflation or deflation?
3. Who is in charge of the Fed?
4. Do voters have a say in the implementation of monetary policy?
5. How is inflation measured?
6. Why is inflation so widely feared?
7. How might a high school student's experience with inflation differ from an employed urban adult?

Purchase this Solution
Solution Summary

Discuss the effects of natural disasters on a nation's money.

Solution Preview

What exactly is the Federal Reserve?

The Federal Reserve System is a quasi-governmental banking system. Its composition is as follows:
(1) Presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.
(2) The Federal Open Market Committee;
(3) 12 regional Federal Reserve Banks located in major cities throughout the nation; and (4) numerous private member banks, which own varying amounts of stock in the regional
Federal Reserve Banks.

(Wikipedia)
The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements. The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy.
The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations. Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.

Do the effects of natural disasters, such as hurricanes, cause ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • The mental Health effects of Diasters

    Explain major health effects of disasters, crises, and or trauma causing events in people (survivors or caregivers) In most instances the health effects from natural disasters, and traumatic-causing events are similar.

  • Interventions in a Natural Disaster.

    Often resilience and adaption is likely in these cases of natural disasters. 3.

  • economic profits, economic losses and opportunity cost,

    As someone with an understanding of opportunity costs, if you were asked, what would be your economic analysis of the effects of the natural disaster? Using your knowledge of GDP, explain why GDP might increase during the cleanup.

  • Social Psychology

    people suffering traumas from natural disasters.

  • Communicating an Emergency Response Plan

    Over a period of time the Human Resource Manager/professional will build on the capacity of the organization to fight disasters and minimize the adverse effects of disasters.

  • Trauma-related Counseling

    Give an analysis of why natural and man-made disasters, crises, and other trauma-causing events have become a focus of the mental health counseling profession and the implications of this focus on mental health counselors and on the profession itself.

  • Migration for Reducing Economics

    The review into the role of migration for reducing economic slow growth during natural disasters.

  • Correlation Related Events Make Sense Viewed by the Martian

    The number of doctors and the occurrences of natural disasters do vary up and down together. But the Martian reversed the order of cause. It is the natural disaster that caused the doctors to arrive, not vice versa. A.

  • Safety & Security, Vulnerability Assessment

    Disasters are frequently categorized according to their perceived causes and speed of impact. [See: Sudden natural disasters; Slow-onset disasters; Technological disasters; Human-made d disasters].

  • Natural Disaster Effects

    560911 Natural Disasters How do natural disasters affect individual levels of stress in a community?

View More Related Solutions