principles of business

The banking and currency system in the U.S. is the envy of the world. There are approximately 260 nations on earth. Out of those only about 10 have a stable currency. We take this for granted. Money is simply stored value. It evolved from the barter system. Gold has a universally recognized value. All early currencies were based on it. Today our currency is considered so stable that many nations now peg their currency to our dollar.

Many Americans are ignorant about the federal reserve board. It has been said that the chairman  has more power to affect the average citizen’s life than the president. Follow the links and answer the associated questions.

1. What are three ways that the Federal Reserve Board controls the nations money supply?  The Federal Reserve System (https://www.federalreserve.gov/monetarypolicy/beigebook/beigebook2008.htm)

2. Many economists now feel that M2 is a more important indicator than M1. Why is this?

3. Watch the following YouTube on Bitcoin and the Blockchain. Who knows what the future of this is, however it big enough that we can assume its here to stay. What are your thoughts about it. Would you use or invest in Bitcoin? https://youtu.be/oSP-taqLWPQ