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Financial Concepts and Financial Crisis

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"Financial Concepts and Financial Crisis" Please respond to the following:
Explain at least two (2) ways financial systems and markets have had an impact in your life in the past or may impact you in the future. 


Financial markets and systems have an impact in my everyday life and will continue to do so in the future. I have funds in savings and I have various investments in which I am consistently monitoring and making alterations. Financial systems and markets allow for the generation and flow of funds. I am able to go to banks, withdraw, deposit, and borrow funds. I can invest funds in various forms in the stock market or otherwise. In doing this, financial systems and markets have allowed me to gain and lose funds. Overall these systems and markets allow the ease and transfer of funds, whether it be between persons, institutions, governments, or otherwise.

Determine at least one (1) course of action the Federal Reserve can take to minimize the negative impact that a financial crisis could potentially have on the U.S. economy. Provide support for your response.

One course of action the Federal Reserve can take to minimize the negative impact that a financial crisis could have on the economy is to be innovative. The Fed must leave room for it self to be more “fluid” and be able to adapt to changes as they come. Following strict guidelines and procedures that have been in place for years does not lend it self well to unprecedented circumstances. The Fed must be able to make changes and adapt to circumstances and being rigid does not allow for this. I think that this course of action is supported by history. The Fed was very innovative in dealing with the financial crisis of 2008 and it is one of the main reasons our economy was able to recover, not to mention why we did not slip into an even greater crisis.

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