ch4_functions of the Fed

ch4_functions of the Fed - Chapter4 FunctionsoftheFed...

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  Chapter 4 Functions of the Fed
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  Organization of the Fed The Fed has five major components: Federal Reserve district banks Member banks Board of Governors Federal Open Market Committee (FOMC) Advisory committees
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  Organization of the Fed (cont’d) Federal Reserve district banks There are 12  Federal Reserve district  banks District banks clear checks, replace old  currency, provide loans to depository  institutions, and conduct research
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  Exhibit 4.1 Locations of Federal Reserve  District Banks
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  Organization of the Fed (cont’d) Member banks All national banks are required to be  members of the Fed
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  Organization of the Fed (cont’d) Board of Governors The  Board of Governors  consists of  seven members Main roles: Regulate commercial banks Control monetary policy
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  Organization of the Fed (cont’d) Federal Open Market Committee (FOMC) The  FOMC  consists of the seven members of the  Board of Governors plus the presidents of five Fed  district banks Goals: promote high employment, economic  growth, and price stability Achieved through control of the money supply
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  Organization of the Fed (cont’d) Advisory committees The Federal Advisory Council The Consumer Advisory Council The Thrift Institutions Advisory Council
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  Exhibit 4.2 Integration of Federal Reserve  Components
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This document was uploaded on 08/05/2011.

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ch4_functions of the Fed - Chapter4 FunctionsoftheFed...

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