Mechanics of the treasury market

150 words Watch the following video on the mechanics of the treasury market. Complete the two exercises: 1) The textbook assumes that the most important function of the Fed is the management of monetary policy and control of the money supply. However the Fed has other important functions: 1a. The Fed issues “Federal Reserve Notes,” the paper currency used in the U.S. monetary system. 1b. The Fed provides a check collection service for banks (checks are also cleared locally or by private clearing firms). 1c. Federal Reserve System acts as the fiscal agent for the Federal government. 1d. The Federal Reserve System supervises member banks. Choose one of the four functions above and describe that function in more detail. Use the video above and any articles from the federal reserve as your sources. Federal Reserve homepage. 2. Warren Mosler talks about learning to understand monetary operations and how he used them in his trading and investing career. Answer one of the questions below 2a) According to Mosler, why must the fed expand the money supply and prevent overdrafts? Why does the federal government have to spend money before anyone else can have any? Why do currencies have value? 2b) According to Mosler, why are users of a currency different from issuers of a currency? Why did creating the Eurozone cause problems for European economies? How did the Euro gain value overnight? 2c) What were some of the unique kinds of trades Mosler talks about during the interview. What monetary operations did he understand that others didn’t? How do the monetary issues connect to economic policy issues? Choose one of the topics above to summarize from the Mosler interview. https://www.youtube.com/watch?v=W97s3zbFKvc&feature=emb_title