BYRON VAN HOLLEN
What is the Fed?
The Fed's Goals and Responsibilities
Clear Checks- What this means is that if a check is brought in they make sure that the bank has enough money to go through with the check.
Supervise Banks- The Fed watches over the banks too make sure they always have enough money, or can get enough money if by chance someone withdrew all their money.
Supply Money- If a bank needed more money the Fed gives money to the closes District Bank which then gives money to the commercial bank.
History of the Fed
- Late 1700- First money printed to help finance the war
- Early 1800- Congress established the first bank
- Mid 1800- Second bank was established
- Late 1800- National Banking Act passed
- Early 1900- President Wilson signed the Federal Reserve Act of 1913, which established the Fed
- Mid 1900- Stock market crash, 10,000 banks failed in depression
Board of Governors
FOMC and Monetary Policy Tools
Open Market Operations- Government buying and selling bonds
Discount rates- Bank interest rates
Reserve Requirements- cash on hand at each bank
- Inflation- Normal unless "severe", prices rise quickly and people spend a lot
- Recession- bad, sluggish economy, high unemployment
- Depression- Really bad, a severe loss in jobs
BEP and US mint
The US mint is where all of the coins are made. This includes coins we buy stuff with and collectible coins.