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Unformatted text preview: “central bank” Structure:-board of governors (7), appointed by the president-chairman: Ben Bernanke-12 federal districts (each w/ a federal reserve bank)-Open market committee (policy-making) Functions:-regulations banks-performing bank-related activities for the treasury-monetary policy implements monetary policy through-open market operations-reserve requirement: governed by board of gov. (how much money fed reserve system requires banks to have in their vaults, it’s a certain percentage)-discount rate: gov by board of gov (when banks borrow money to acquire proper percent, it’s the interest rate) American banking systems Commercial banks-demand deposits (CHECKING)-time deposit (savings)-certificate of deposit-ATM’S SAVINGS AND LOAN ASSC. Credit unions Nonbanks-life insurance companies, pension funds, brokerage firms, commercial/consumer finance companies...
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- Spring '07
- Monetary Policy, Federal Reserve System, Ben Bernanke