Web Activity 1

Find historical data for M1 and M2 at the Federal Reserve at www.federalreserve.gov/releases/h6/about.htm. During the past year, which measure of the money supply has increase the least? The most? Based on what you have learned about the difference between M1 and M2, what might explain why one type of money is increasing faster than the other?

Web Activity 2

Take the Fed Challenge at the St. Louis Fed at http://www.stlouisfed.org/education/fedchallenge.html. Print your answers and bring them to class. Which question is most important for U.S. economic policy? Why?

Web Activity 3

Log on to www.federalreserve.gov/releases/h3/about.htm and access the latest release.

• What is the latest level of required reserves?
• Are banks keeping excess reserves?