september 15 - Karina Santana THE FEDERAL RESERVE*Created...

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Karina Santana September 15, 2011 THE FEDERAL RESERVE *Created in 1913 and took 6 years to figure out a structure 1. QUASI governmental (half private, half governrnental) 2. Decentralized (not a central bank, consist of 12 separate banks) 3. Independent (independent from president, congress, which means: free to do what it wants for the good of the nation STRUCTURE OF THE FEDERAL RESERVE F.O.M.C.: make monetary policy QUASI GOVERNMENTAL BECAUSE: 12 members: 7 governors and 5 Federal Reserve Bank presidents The Federal Reserve president is permanent and it’s the NYC Federal Reserve president. The other 4 keep rotating Functions 1. Monetary policy- trying to control commercial bank money. Making money available 2. Supervision and regulation 3. Bank for the US government 4. Payments system a. By check b. By electronic funds transfer: FED WIRE- instantaniance movement of money from bank to bank in the U.S. RESERVE BANKS (WHAT THEY DO?)
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This note was uploaded on 10/12/2011 for the course BUSN 3320 taught by Professor Friedman during the Fall '11 term at CUNY Brooklyn.

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september 15 - Karina Santana THE FEDERAL RESERVE*Created...

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