The Structure of the Federal Reserve System - Econ

The Fed

made to be a decentralized central bank

December 23, 1913

when was the federal reserve system created by Congress by law

economic crises

why was the fed made?

member banks

____: commercial banks that are members of, & hold stock in the Fed

national banks

___: those chartered by the national gov, must belong to Fed

individual banks

____: those chartered by state governments have the choice to belong or not to Fed

board of governors

the _____ makes a report ea. yr to Cong. & puts out a monthly bulletin that reports on national & international monetary matters

state-chartered member

board of governors regulates certain operations of _______ _____ banks

monetary policy

the board of governors conducts some aspects of...

board of governors

the ____ is primarily a regulatory & supervisory agency

Federal Reserve, member banks

the board of governors sets general policies for ____ & ____ to follow

7

how many ppl sit on board of governors

president, senate

how board of governors selected: ea. Member appointed by ___ & approved by ____

14 years

length of terms of board of governors

2, staggered

opening for board of governors every _____ b/c terms are ___, so always have an experienced member on board

federal open market committee

FOMC stands for

board of governors, presidents, district banks

FOMC is made up of ___ and ___ of the ___

Janet Yellen

who is the current fed chair (nominated in 2014 by Obama)

4 years

fed chair serves for ____

price stability

the foundation of a strong economy is...

12, 25

how many federal reserve district banks are there, how many additional branch banks

north east, west

districts are smaller in _____, but are larger moving out ____

demand

____ increases with increase in money supply

deposits, loans, public

district banks accept __ of & make __ to banks & thrift institutions, just as banks perform these functions for the ___

federal reserve board

district banks supervised by the...