Intro to the FED
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Intro to the FED

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3/21/11

3/21/11

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Intro to the FED Presentation Transcript

  • 1. Week of March 21st AGENDA
    GPS: SSEMI1b & SSEMA2a
    Raider Prep Today’s Do Now
    Then: Be prepared for Notes & CW
    READ Functions of Money (p 286)
    READ Characteristics of Money (p. 289-290)
    Raiders Learn (Lesson):
    Notes: Federal Reserve System
    Raiders in Action (Learning Assessment):
    CW: Money (Ch 11 p. 285-290)
    $1 Bill Activity – Where did the money come from?
    Raiders Take Out (Homework):
    TA5 Quiz Monday, March 28
    QUIZ on Fri (NO NOTEBOOK!!!)
  • 2. Georgia Performance Standards:
    SSEMI1 (Social Studies Economics Micro #1)
    The student will describe how households,
    businesses, & governments are interdependent &
    interact through the flows of goods, services, & money.
    Explain the role of money & how it facilitates
    exchange.
    SSEMA2 (Social Studies Economics Macro #2)
    The student will explain the role & functions of the
    Federal Reserve System.
    Describe the organization of the Federal Reserve
    System.
  • 3. The Federal Reserve System
  • 4. FUNCTIONS of Money
    Medium of Exchange-
    something accepted by all parties as payment for G/S
    Measure of Value (unit of accounting):
    common denominator that can be used to express worth in terms that most people can understand
    Ex: dollar, pound, yen, ruble, peso, Euro-
    useful in comparing values of different items
    3. Store of Value-
    for use later in the economy; saved until needed
  • 5. CHARACTERISTICS OF MONEY:
    PORTABLE- CARRIED EASILY
    DURABLE- PAPER MONEY LASTS ABOUT 1 YEAR
    DIVISIBLE- MAKE PURCHASES INTO ANY AMOUNT
    LIMITED AVAILABILITY (limited in supply)- LOSES VALUE WHENEVER TOO MUCH IS PRODUCED
  • 6. PRODUCTS for Classwork:
    1Pink,4 Orange - Water
    2 Pink, 5 Orange - Oranges
    3 Pink,6 Orange - Gold
    4 Pink,7 Orange - Beads
    5 Pink - Corn
    6 Pink - Books
    7 Pink - Dried beans
    1 Orange - Blank Compact Discs
    2 Orange - Furs
    3 Orange - Pencils
  • 7. CW 3/21/11: MONEY
    Each group has been assigned a product
    Use pages 285-290 of your book to explain the
    following for your product:
    a) What functions of money could it fulfill, if any?
    b) How so or not so?
    2.a)What characteristics of money does it fulfill, if any?
    b) How so or not so?
    Read Cybernomicswhole group pg. 286
    3. a) Does cybercurrency fulfill the functions &
    characteristics of money? b) Why or why not?
    c) Do you think that paper & coin money will
    eventually disappear? d) Why or why not?
  • 8. Federal Reserve System (FED)
    Created in 1913 under President Wilson
  • 9. FED Duties
    Conducts nation’s monetary policy (control money supply)
    Regulates banks
    Maintains stability of financial system
    Provides Services to…..
    A. U.S. Gov’t Banks
    B. Banks- clears checks and makes loans
    C. Foreign Financial Institutions
    D. Distributes Currency
  • 10. “FAMILY TREE” of the Federal Reserve System
    FED
    (Great-Grandparents)
    FOMC
    Board of Governors
    Advisory Councils
    (Great Aunts/Uncles)
    DISTRICT BANKS
    (Grand-Parents)
    BRANCH BANKS
    (Parents)
    MEMBER BANKS
    (Grandchildren)
  • 11. ORGANIZATION OF FED
    Board of Governors (7 members total)
    Members
    6
    Serve 14 year terms
    Chair
    1
    Serves 4 year term
    Currently: Ben Bernanke
    All
    Appointed by the President
    Approved by the Senate
  • 12. ORGANIZATION OF FED
    Advisory Councils (advise Board of Governors)
    Federal Advisory Council
    Rep from each District Bank
    Advise on overall health of economy
    Consumer Advisory Council
    Reps from education & consumer
    industries
    Advise 3 times/yr on consumer
    credit laws
    Thrift Institution Advisory Council
    Reps from financial institutions
    Advise 3 times/yr on savings matters
  • 13. ORGANIZATION OF FED
    Federal Open Market Committee (FOMC)
    VotingMembers (12 total)
    Board of Governors
    President of NY District FED
    4 Presidents from other District Banks
    (serve 1 yr on FOMC on rotating basis)
    Function
    Meet 8 times per year in Washington D.C.
    Review status of economy
    Set FED Monetary Policy
  • 14. ORGANIZATION OF FED
    12 FED District Banks
    Independent of other district banks
    Each has own President & Board
    Supervised by the FED
    Function:
    Act as a bank for member banks
    25 FED Branch Banks
    Thousands of Member Banks
  • 15. 12 FED – District Banks and 25 FED Branch Banks
  • 16. $1 Bill – Where did it come from?1. Name of City in Seal2. # of District Bank3. Letter of District Bank