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November 16 2007 - 3 The fiscal agent of governmental...

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Federal Reserve 1. It’s a central bank; they have the responsibility for the money supply and credit of the U.S. 2. Quasi banks- private ownership with public control. Commercial banks own the federal reserves yet the Federal Reserve regulates the banks. Banker’s banks. Lender of last resort. The thrift industry is dead because of so much consolidation. Pension funds Federal reserves major duties are 1. Money supply and credit. 2. Lending money to the banks, the lender of last resort.
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Unformatted text preview: 3. The fiscal agent of governmental agencies. One of the goals of the fed. Is to defend the dollar. The responsibility of the dollar, where it trades. 2 uses of money, the transactions (dependant upon the nominal GDP) and to buy assets. The assets demand for money involves the loan-able money theory. Interest rate is what you pay for money. It is supply and demand. Page 273 in the yellow...
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