Your SlideShare is downloading. ×
Web quest econ
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Web quest econ

41

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
41
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. FEDERAL RESERVE WEB QUEST BY KAITLIN KITCHENS
  • 2. MAJOR EVENTS TIMELINE 1791- Print first money 1863National Banking Act 1907- Wall Street Fail 1913Federal Reserve System born 1929Great Depression 1935Banking Act of 1935 1951- The Treasury Accord 1980Monetary Control Act 2011- 9/11 occurs 2003Discount Window Operation Changes 2007- m great depress occur
  • 3. STRUCTURE & FUNCTIONS Board of Governors Chairman, Vice Chairman Federal Advisory Council Consumer Advisory Council Advisory Committ ess Federal Reserve Banks (12) Federal Reserve branches (25) Member Banks (3,543) Federal Open Market Committee Thrift Institutions Advisory Council
  • 4. QUIZ RESULTS
  • 5. FEDERAL RESERVE DISTRICTS •ATLANTA IS NUMBER 6
  • 6. MONETARY POLICY • 2 basic goals, to indorse maximum bearable output and employment and to indorse stable prices. • The tool they use is the federal fund rate through the open market operation, federal funds market. • Open market operations are the tool the federal government uses to affect the supply of reserves in the banking system. • The FOMC is the system that is mainly in charge of going through with the formulation and conduction of the monetary policy. • They typically conduct open market operations several times a week to prevent technical, temporary forces from moving the effective federal funds rate too far from the intended rate.
  • 7. FEDERAL TOOL KIT DESCRIPTIONS • Tight or Easy Monetary Policy- used to reduce the growth of money & credit • Discount Rate- the interest rate used in discount cash flow analysis to determine the present value of future cash flow • Open Market Operations- make adjustments in the availability and price of short term funds to banks. This is the most important policy tool. • Reserve Requirements- the ability of the Feds’ to raise or lower banks’ reserve requirement.
  • 8. IN DEPTH- WHO SETS THE MONETARY POLICY? • The Federal Reserve set the Monetary Policy. They overlook the amount of money and credit is in the US Economy and influence it as well. Influencing this, or making changes, directly affects the interest rate, (the cost of credit), and what happens to the US Economy. Putting this is more simple terms, if the cost or credit is minimized, more people will borrow money and the economy will stir up.
  • 9. NEW VOCABULARY • Lender of Last Resort- describing the Federal Reserve’s role in providing funds to financial institutions in a financial crisis • Humphrey- Hawkins Testimony- congressional testimony by the Federal Reserve Chairman about the goals and objectives, and conduct of monetary policy. • Discount Window- lending facility through which each Federal Reserve Bank extends and loans to banks and other depository financial institutes.
  • 10. PLAYING THE GAME • At first it was hard to keep the economy on track, but after playing around with numbers and getting the hang of it, I did quite well.

×