Ch 4 - CHAPTER 4 Functions of the Fed 1 A. Organization of...

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1 CHAPTER 4 Functions of the Fed
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2 A. Organization of the Fed
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3 A. Organization of the Fed Federal Reserve District Banks 12 national districts (We are in district 10) New York is considered most important Member banks must purchase stock Each district has 9 directors District banks: clear checks replace old currency provide loans to member banks
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4 A. Organization of the Fed Member Banks Required of all nationally chartered banks (state chartered banks need not be members) At present, about 35% of all banks are member banks Member banks hold about 70% of all bank deposits in the U.S. economy
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5 A. Organization of the Fed Board of Governors (aka Federal Reserve Board) Composed of 7 members appointed by the President for a 14 year non-renewable term Chair selected by President to serve a renewable 4 year term Roles of the Board: regulate commercial banks control monetary policy
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6 A. Organization of the Fed Federal Open Market Committee (FOMC)
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Ch 4 - CHAPTER 4 Functions of the Fed 1 A. Organization of...

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