The Federal Reserve System

The Fed

  • Created for a stable banking system.
  • Main focus is price stability.
  • Regulates the nation's money supply.
  • Supervises banks.
  • There are twelve district banks located in: Boston, Chicago, New York, St. Louis, Philadelphia, Cleveland, Minneapolis, Kansas City, Richmond, Dallas, Atlanta, and San Francisco.

Board of Governors

  • Located in Washington D.C.
  • Term of office is 14 years.
  • Made up of 7 members (one is chairman).
  • Makes U.S. monetary policy.

Federal Open Market Committee

  • Buys and sells U.S. Treasury securities.
  • Evaluates the course of monetary policy.
  • Guides open market operations.

Bureau of Engraving and Printing

  • Locations in Washington D.C. and Fort Worth.
  • Does not produce coins.
  • Produces paper currency.
  • Established in 1862.

U.S. Mint

  • Locations in Philadelphia and Denver.
  • Produces coins.
  • Created in 1792.