the federal reserve system youtube/watch?v=gsxmwjqwizs
DESCRIPTION
The Federal Reserve System http://www.youtube.com/watch?v=GsxmwjQWiZs. List the 3 parts of the Federal Reserve System. Board of Governors Federal Open Market Committee (FOMC) Reserve Banks. Why was the Federal Reserve System Created?. Address Banking Panics. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/1.jpg)
The Federal Reserve System
http://www.youtube.com/watch?v=GsxmwjQWiZs
![Page 2: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/2.jpg)
List the 3 parts of the Federal Reserve
System• Board of Governors• Federal Open Market
Committee (FOMC)• Reserve Banks
![Page 3: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/3.jpg)
Why was the Federal Reserve
System Created?• Address Banking Panics
![Page 4: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/4.jpg)
When was the Federal Reserve System Created?
• 1913
![Page 5: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/5.jpg)
The Board of Governors
![Page 6: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/6.jpg)
How many people are on the Board Of
Governors?• 7 – Ben Bernanke - Chairman
![Page 7: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/7.jpg)
How do the members of the
Board of Governors get their jobs?
• Appointed by the President and confirmed by the senate
![Page 8: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/8.jpg)
For how long do the members of the
Board Of Governors serve?
• 14 years
![Page 9: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/9.jpg)
What is the role of the Board Of Governors?• Help write policy to make
banks sound• Oversee Federal Reserve
Banks• Decisions about money growth
![Page 10: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/10.jpg)
The Federal Open Market Committee
(FOMC)
![Page 11: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/11.jpg)
What is the primary purpose of the
Federal Open Market Committee (FOMC)?• Direct monetary policy
![Page 12: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/12.jpg)
Who is on the FOMC?
• 7 members of the Board of Governors• President of the Reserve Bank of
NY• 4 Reserve Bank Presidents
(rotating through)
![Page 13: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/13.jpg)
What is the Federal Funds Rate?
• Bank rates of interest that banks charge each other for loans.
![Page 14: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/14.jpg)
Federal Reserve Banks
![Page 15: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/15.jpg)
How many districts are in the Federal Reserve System?
• 12
![Page 16: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/16.jpg)
What are the three audiences of the Reserve Banks?
• Bankers• US Treasury• Public
![Page 17: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/17.jpg)
What is the purpose of the Federal
Reserve Banks?• Coins• Store Currency• Supervise Banks• Bankers Bank
![Page 18: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/18.jpg)
The Fed’s Regional Structure
![Page 19: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/19.jpg)
What are the Fed’s three main
responsibilities?• Monetary Policy• Financial Services• Supervising Banks
![Page 20: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/20.jpg)
How many Reserve Banks are there?
• 12
![Page 21: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/21.jpg)
How many Branch Banks are there?
• 24
![Page 22: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/22.jpg)
The federal Reserve Map!
![Page 23: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/23.jpg)
Conducting Monetary Policy
![Page 24: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/24.jpg)
What does it mean to “conduct
monetary policy”?• Managing the nations system of money and
credito Expansionary policy: increasing the supply of money
due to fear of recession!o Contractionary policy: decreasing the supply of money
due to inflationary fears!
![Page 25: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/25.jpg)
List and explain the 3 tools that the Fed has to carry out its monetary policy.
• 1. Discount Rate – interest rate reserve banks charge for short term loanso Expansionary: interest rates loweredo Contractionary: interest rates raised
![Page 26: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/26.jpg)
• 2. Reserve Requirements – percent of deposits that must be held at the member banks at all timesoExpansionary: reserve
requirement loweredoContractionary: reserve
requirement raised
![Page 27: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/27.jpg)
• 3. Open Market Operations – buying and selling of bondsoExpansionary policy: US Treasury
bonds are bought back from public!oContractionary: US Treasury
bonds are sold to public!
![Page 28: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/28.jpg)
Which of the three tools is the most
frequently used tool of the Fed?
• Open Market Operations
![Page 29: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/29.jpg)
Supervising and Regulating Banks
![Page 30: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/30.jpg)
What is the difference between
regulation and supervision of banks?• Regulation – written rules telling
banks what they can and can’t do• Supervision – enforcement of
policy (written rules)
![Page 31: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/31.jpg)
List and explain the three duties of the
Fed that are associated with
supervising banks.1. Establish safe and sound banking
practices2. Protecting consumers3. Ensuring the stability of financial markets
![Page 32: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/32.jpg)
Providing Financial Services
![Page 33: The Federal Reserve System youtube/watch?v=GsxmwjQWiZs](https://reader035.vdocuments.us/reader035/viewer/2022081418/56814d4f550346895dba8313/html5/thumbnails/33.jpg)
What kinds of financial services does the Federal Reserve System
provide for banks?• Distributes currency• Process checks• Electronic payments