Chapter 3 central banks and the federa structure of

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Unformatted text preview: era Structure of the Fed The writers of the Federal Reserve Act wanted to diuse power along regional lines, between the private sector and the government, and among bankers, business people, and the public This initial diusion of power has resulted in the evolution of the Federal Reserve System to include the following entities: The Federal Reserve banks, the Board of Governors of the Federal Reserve System, the Federal Open Market Committee (FOMC), the Federal Advisory Council, and around 2,900 member commercial banks. Eco 029 What is Money? (Chapter 3) Central Banks and the Federa Structure and Policy Tools in the Federal Reserve System Federal Reserve System Federal Reserve Banks Quasi-public institution owned by private commercial banks in the district that are members of the Fed system Member banks elect six directors for each district; three more are appointed by the Board of Governors Three A directors are professional bankers Three B directors are prominent leaders from industry, labor, agriculture, or consumer sector Three C directors appointed by the Board of Governors are not allowed to be ocers, employees, or stockholders of banks Eco 029 What is Money? (Chapter 3) Central Banks and the Federa Feder...
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This document was uploaded on 04/03/2014 for the course ECON 029 at Lehigh University .

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