The Federal Reserve
Mitch Clark&Kaitlyn Nance
About the Fed
http://box355.bluehost.com/suspended.page/disabled.cgi/thestoryofagirl.com
Functions
- Federal Supervision- sets reserve requirments
- Agent of Federal government- fed holds a checking account for the US treasury
- Monetary Policy- influences money and credit conditions in the econmoy
- Open Market Policy- operations by buying and selling government securities
- Lending Standards- legislation dealing with lending and credit
- Supplies Currency- medium of exchange for value
How the system works
http://econperspectives.blogspot.com/2008/11/structure-of-federal-reserve-system.html
It is based off currency
http://www.google.com/url?sa=i&rct=j&q=federal+reserve+system&source=images&cd=&cad=rja&docid=xAAiZixPJMHv6M&tbnid=NfRyeea_j0kveM:&ved=&url=http%3A%2F%2Famericanbuilt.us%2Fvideos%2Ffederal-reserve-system.shtml&ei=6jZsUcWhH4TC9QTj3oHYCA&psig=AFQjCNHmmQtJ0zRNpV3NPgRrOWR_im-HwA&ust=1366132842856572
Extra Functions
http://www.google.com/url?sa=i&rct=j&q=federal+reserve+system&source=images&cd=&cad=rja&docid=K8daCswVTY3xVM&tbnid=q-Kn4Tnab8lbEM:&ved=&url=http%3A%2F%2Fbusiness2.fiu.edu%2F1400445%2Fwww%2FSpring_2012_FIN6625_R90%2FFIN%25206625%2520Exhibits%2520Int'l%2520Banking%2FTools%2520of%2520Monetary%2520Policy%2F&ei=6jZsUcWhH4TC9QTj3oHYCA&psig=AFQjCNHmmQtJ0zRNpV3NPgRrOWR_im-HwA&ust=1366132842856572
Fed>Member Bank>Consumer
Extra Info
* Tight money helps stabilize the economy and loose money stimulates it.
*Participates in open market opeartions- buying government securities.
* Supervises and set standards for banks to follow
*Establish confidence in the monetay system
*Assist in lending money to member banks
*Clears out checks
*Is the only way that currecy or money are distributed