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12-a. The Federal Reserve System

12-a. The Federal Reserve System - The Federal Reserve...

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Click to edit Master subtitle style 2/11/11 The Federal Reserve System The Central Bank of the United States
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2/11/11 The Fed’s Role in a Nutshell Manages the nation’s supply of money and credit. Enables smooth business transactions by providing currency, coin, and payment services (e.g., electronic funds transfer and check clearing). Serves as banker for the federal government by providing financial
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2/11/11 Why We Need a Central Bank The U.S. lacked a central bank until 1913. Without a central money manager, the nation’s financial system was unstable resulting in frequent economic depressions and financial panics. After the Bank Panic of 1907 and considerable debate, Congress
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2/11/11 The Fed Is Nation’s Money Manager Money and credit are lifeblood of the economy (enable commerce, job creation, and business growth. Fed implements monetary policy to manage flow of money and credit in the economy. If money and credit expand too rapidly, business cannot increase production fast enough to keep up
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2/11/11 How the Fed is Organized
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