BUSN602 Week 2 Homework Problems:

BUSN602  Week 2 Homework Problems:

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You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references.

• Chapter 5: DQ5-1, E5-2; P5-2, P5-6
• Chapter 7: DQ7-17; E7-3, E7-4, P7-5
• Identify and define five economic indicators.

Name your assignment file as “LastnameFirstinitial-BUSN602-Week2", and submit by midnight ET, Day 7.

List and describe briefly the economic policy objectives of the nation.

Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy, and debt management carried out by the Federal Reserve System, the President, the Congress, and the U.S. Treasury. Describe the responsibilities of the various policy makers in trying to achieve the four economic policy objectives.

Assume that Bank A receives a primary deposit of $100,000 and that it must keep reserves of 10 percent against deposits.