245303355-Economics-Notes.docx - Economics Notes Learning...

This preview shows page 1 - 3 out of 7 pages.

The preview shows page 1 - 3 out of 7 pages.
Economics NotesLearning Targets 4/18/13Describe how electronic banking has changed banking servicesRecognize the steps in balancing a checkbookDistinguish between money and near moneysKnow what is included in M1 and M2NotesComputers ushered in a new form of banking – electronic fund transfers (EFT).Automated teller machines (ATM)Lack of privacy and possibility of tampering are risks of electronic bank transfers.Customers have little “float” time between writing the check and its being cashed by the bank.Electronic funds transfer act helped calm some of these concerns.Learning Targets 4/22/13Demonstrate knowledge of National Income Accounting.Describe how the Federal Reserve System is organized.Know the functions of “The Fed”.NotesCongress created the Federal Reserve System in 1913 as the central banking organization in theUnited States.Its major purpose was to end the periodic financial panics that had occurred.Prior to Ben Bernanke, Alan Greenspan was appointed by Republicans and Democrats to fourterms.Learning Targets 4/24/13Describe how the Federal Reserve System Is organizedKnow the functions of “The Fed”.Notes
Board of Governors : 7 members, 14 year termsChairman and Vice chairman serve four year termsBoard of governors oversees the 12 district Federal Reserve banks.12 membersThe 7 governorsThe head of the NY fed4 other head of Federal Reserve district banks n a rotating basisThe Fed Open Market Committee is responsible for monetary policy.Monetary policy involves the changing rate of growth of the supply of money I circulation inorder to affect the amount of credit, which affects business activity in the economy.Twelve Federal Reserve banks are set up as corporations owned by member banks.The Federal Advisory Council reports to the board of governors on general business conditions inthe country.The Federal Open Market Committee decides what the Fed should do to control money supply.Member Banks – all national banks, those chartered by the federal government, must join theFederal Reserve System; state chartered banks may join if they choose.All institutions that accept deposits from customers must keep reserves in their district FederalReserve banks.The Federal Reserve System has many functions.It’s most important function is to regulate the money supply.Learning Targets 4/26/13Describe the functions of the Fed.Notes: Functions of the Federal Reserve SystemSupervising banksHolding Reserves for banksSupplying paper money and coinsThe Banker for the Federal GovernmentThe Fed sets standards for consumer protection, mainly truth-in-lending lawsMost important function: Regulating the money supply in order to manage the overall economyMonetary policy involves changing the growth rate of the money supply in order to change thecost and availability of credit.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 7 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
Economics, Monetary Policy, Federal Reserve System

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture