1 / 7

The Federal Reserve

The Federal Reserve. Our Banking System. What is the Federal Reserve System?. Central bank of the United States It is the heart of the economic system It pumps money into the economic system It strives to maintain an orderly, steady supply to the functioning parts

pier
Download Presentation

The Federal Reserve

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Federal Reserve Our Banking System

  2. What is the Federal Reserve System? • Central bank of the United States • It is the heart of the economic system • It pumps money into the economic system • It strives to maintain an orderly, steady supply to the functioning parts • There is never too much or too little It has the following responsibilities: - Carries out monetary policy, regulates money supply, provides money climate for country

  3. What is the structure of the Fed? • It began in 1913 under the Fed. Reserve Act of 1913 • Congress gave it the authority to determine and carry out nation’s monetary policy • Control rests in a 7 person Board of Governors • Each member is appointed by President and serves 1- 14-year term

  4. Who is the FOMC? • Federal Open Market Committee (FOMC) • There are 12 Fed. Reserve Banks, each with its own president • The board and 5 of the individual banks presidents meet 10 times a year • They decide how the overall monetary policies will be carried out

  5. Current Fed. Reserve Chairman Ben Bernanke

  6. What are the day to day operations? • Offer financial advice, holds deposits, provides quick access to currency and offers check-clearing facilities (member banks) • Estimates how much money is currently in the system • Basic supply is M1 (all coin and paper money) plus demand deposits (checking accounts, etc) • M2 is M1 plus savings balances • Are other M’s but M1 and M2 are the large majority of money in the system

  7. Federal Reserve Banks Across the U.S.

More Related