The Federal Reserve. By Board of Governors.pdf - Board of Governors of the Federal Reserve System Washington D.C 1994 \u25cb \u25cb \u25cb \u25cb \u25cb \u25cb \u25cb \u25cb

The Federal Reserve. By Board of Governors.pdf - Board of...

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Board of Governorsof the Federal Reserve SystemWashington, D.C.1994
PrefaceTHEBOARDSPUBLICATIONSCOMMITTEEhad overall responsibilityfor the preparation of this edition. Major contributions were made bythe following:DIVISIONOFRESEARCHANDSTATISTICSMichael J. Prell, Thomas D. Simpson, Lawrence Slifman, Darrel Cohen,S. Ellen Dykes, Gregg Forte, Sherrell E. Varner, Catherine H. Farnsworth,E. Constance Kinzie, and Gwenavere G. White-DuboseDIVISIONOFMONETARYAFFAIRSDonald L. Kohn, David E. Lindsey, Brian F. Madigan,Normand R.V. Bernard, James A. Clouse, and Joshua FeinmanDIVISIONOFINTERNATIONALFINANCEEdwin M. Truman and David H. HowardDIVISIONOFBANKINGSUPERVISIONANDREGULATIONRichard Spillenkothen, Frederick M. Struble, and Virginia M. GibbsDIVISIONOFCONSUMERANDCOMMUNITYAFFAIRSGriffith L. Garwood and Maureen P. EnglishDIVISIONOFRESERVEBANKOPERATIONSANDPAYMENTSYSTEMSFlorence M. Young and Jack K. Walton, IIDIVISIONOFINFORMATIONRESOURCESMANAGEMENTPeter G.Thomas, Barry E. Huber, and Carol WisdomLEGALDIVISIONOliver Ireland and Elaine M. BoutilierOFFICEOFBOARDMEMBERSJoseph R. CoyneThis is the eighth edition of The Federal Reserve System: Purposes andFunctions. It has been revised by staff members of the FederalReserve Board to reflect the changes that have taken place inthe monetary, regulatory, and other policy areas since publica-tion of the seventh edition in 1984. It incorporates majorchanges in the law and in the structure of the financial systemthat have occurred over the past decade.
ContentsOverview of the Federal Reserve System1Background1Structure of the System3Board of Governors4Federal Reserve Banks7Federal Open Market Committee12Member Banks13Advisory Committees14Monetary Policy and the Economy17Goals of Monetary Policy17Monetary Policy and the Reserves Market18Demand for Reserves18Supply of Reserves20Trading of Reserves22Effects of Monetary Policy on the Economy23Limitations of Monetary Policy25Guides for Monetary Policy26Monetary and Credit Aggregates26Short- and Long-term Interest Rates30Foreign Exchange Rates31Conclusion32The Implementation of Monetary Policy33Operational Approaches33Open Market Operations35Other Factors Influencing Nonborrowed Reserves37Techniques of Open Market Operations38A Typical Day in the Conduct of Open Market Operations41The Discount Window42Interest Rates43Borrowing Eligibility45Borrowing Procedures46Types of Credit47123
PURPOSES&FUNCTIONSviThe Implementation of Monetary Policy—continuedReserve Requirements53Structure of Reserve Requirements53Relation to Open Market Operations55Changes in Required Reserve Ratios57The Federal Reserve in the International Sphere61International Linkages62Foreign Currency Operations63Swap Network65Exchange Market Intervention67Other U.S. Foreign Currency Resources68International Banking68Supervision and Regulation71Supervisory Functions72Domestic Operations of U.S. Banking Organizations74

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