Understanding the Federal Reserve and Monetary Policy Free Essay Example, 1500 words

The Central Banking System, one of the references used for the Federal Reserve, headquarters in Washington D. C could close down completely with the sudden onset of the Ebola virus that contagious (Hafer, 130). The nature of the virus, that is, the ability to be contracted easily classifies it as pandemic to the society. Such a disaster is referred to as a pandemic emergency. It has the power to disrupt business operations bringing economic and social costs while it takes a toll on the health of individuals. Another scenario that could result in shutting down of the organization is the occurrence of a technological accident in the form of a malfunction of software in the production of money. The disaster does not halt the normal functioning of the Central Banking System but the operation of other banks in the economy. The closing down of the financial institution results from the mentioned disaster that classified as an environmental emergency. A high magnitude earthquake is a natur al disaster that impacts on human health almost immediately. The disaster causes further death due to secondary impacts. We will write a custom essay sample on Understanding the Federal Reserve and Monetary Policy or any topic specifically for you Only $17.96 $11.86/pageorder now The natural disaster is a certain pass for the closure of the headquarters of the Federal Reserve System. An unresolved conflict within Washington D. C that results in a war in the district is a scenario that promises the complete closure of the financial institutions to avoid looting and attacking of the building. A Complex emergency is a classification of such a disaster (Coppola, 200). The Federal Reserve is sensitive to activities that have any magnitude of negativity on its normal functioning because it is the core of financial institutions in the United States of America. Disaster preparedness minimizes the loss of lives and damages by achieving a satisfactory level of readiness in response to an emergency. It is a certain method of management in reducing the hazardous effects of the bombing scenario.