Federal Reserve Functions
Thomas Trivette & Joe beeson
The Fed Is a centeralized banking system.
Ben Bernacke
http://www.google.com/imgres?q=federal+reserve&start=285&um=1&safe=strict&sa=N&rls=com.microsoft:en-US&hl=en&biw=1067&bih=497&tbm=isch&tbnid=GRnVeHUdfX7FAM:&imgrefurl=http://money.cnn.com/2011/09/21/news/economy/federal_reserve_operation_twist/index.htm&docid=TqaRVZgOeBA-7M&imgurl=http://i2.cdn.turner.com/money/2011/09/21/news/economy/federal_reserve_operation_twist/bernanke-fomc.gi.top.jpg&w=475&h=307&ei=3mFtUfPuFIa08ATtu4GwCA&zoom=1&iact=rc&dur=172&page=19&tbnh=139&tbnw=201&ndsp=15&ved=1t:429,r:96,s:200,i:292&tx=118&ty=77
federal reserve building
http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal_reserve_system/index.html
federal reserve emblem
http://www.google.com/imgres?q=federal+reserve&um=1&safe=strict&sa=N&rls=com.microsoft:en-US&hl=en&biw=1067&bih=497&tbm=isch&tbnid=ZoBcJ_Ez_TQ3oM:&imgrefurl=http://www.esamadison.org/affiliated-organizations/federal-reserve-challenge/&docid=ukodn4KrPFQYKM&imgurl=http://www.esamadison.org/wp-content/uploads/2011/07/Federal-Reserve-Seal-logo.png&w=600&h=600&ei=IWJtUdn8ApCu8QSCioHoDg&zoom=1&iact=rc&dur=16&page=1&tbnh=133&tbnw=133&start=0&ndsp=10&ved=1t:429,r:1,s:0,i:87&tx=75&ty=85
Federal Reserve Functions
- Regulates monetary policy- tight money is when less money is available at higher interest rates. loose money is when money is available at lower interest rates.
- Participates in open market activities- government securities are sold at a discount but are rodemend for face value on the maturity date.
- reserve requirements-
- standards for consumers- sets limits for loans and invesrment by member banks
- supplies currency-money is a medium of exchange for value
- supervise and regulates banks-sets resereve requirements. member banks are required to keep certain percentage of all deposits in the banks vaulto on the deposit with the district federal reserve bank.
- lending standards-sets limits for loans and invesrment by member banks