Unformatted text preview: Accept deposits and make loans primarily For home mortgages. Non-deposit ins±tu±ons: Collect money, provide interest or other benefts, and/or make loans. ²his category includes pension Funds, insurance companies, fnance companies, and securiTes investment dealers. 4. Describe the structure of the ²ederal Reserve System. ²he ³ederal Reserve System is comprised oF a board oF seven governors, 12 reserve banks, and member banks. Its key FuncTons are to control the money supply by establishing and managing monetary policies and to serve as both the government’s bank and as the bankers’ bank. 5. Show how the ²ed uses the discount rate to manage in³a±on in the U.S. economy. ²he ³ed regulates the supply oF money, decreasing the discount rate to keep the economy From slowing down too much and/or increasing it to sTmulate the economy....
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- Spring '14
- Monetary Policy, Federal Reserve System, modern currency