ECO 561 Week 5 DQ 4

This document of ECO 561 Week 5 Discussion Question 4 includes answers to the next points:

Money makes the world go round. Money is created through a series of transactions involving Central Banks, financial intermediaries, businesses, and consumers. A failure of the process to work may cause the economy to freeze. Central banks may alter different rates and terms to increase or decrease the supply of money. Intermediaries may or may not react to the actions of the central bank. Describe the process through which money is created. Explain how current events events less than 90 days have affected this process and the effect current events will have on the economy as a whole.

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