Federal Reserve

By: Chloe Rogahn

What is the Federal Reserve?

The Federal Reserve or Fed is the central banking system of the United States. The Feds main goal is to stabilize and make VERY important decisions that effect the United States economy. The Fed also has to clear checks, supervise banks and supply money.

What is the History of the Fed?

1700s- The first money was printed to finance the War

Early 1800s- The congress established the first bank

Mid 1800s- Congress charted the second bank

Late 1800s- National Banking Act passed, but later fell into a depression

Early 1900s- President Wilson signed the Federal Reserve Act of 1913 which established the Fed

Mid 1900s- The stock market crashed in 1929 and the nation fell into the Great Depression

Who or what are the Board of Governors?

The Board of Governors are the public side of the Fed. There is seven people who serve the board and appointed to serve 14 year terms. One of the seven people who serve, is a chairperson. The chairperson is Currently Janet Yellen. They are appointed by the President, and approved by the congress, who were elected officials by the public.

What is the FOMC?

FOMC or Federal Open Market Committee has a total of 12 voting members (Seven members of the Board of Governors and and five of the 12 Reserve Bank presidents) who meet 6 to 8 times each year to discuss Monetary Policy.

What is a Monetary Policy?

A Monetary Policy is the way the government or country controls the supply of money and the buying and selling of government bonds. This process tries to go for a rate of interest to improve economic growth.

What is inflation, recession and depression?

Inflation- It is normal unless "severe" which is when prices are rising quickly and people are spending to much money.

Recession- Is bad because the economy is slow and a high rate of unemployment.

Depression- Is really bad because it becomes a long-term situation. Leaving the unemployment rate raising higher then before.

What are the Federal Reserve Bank?

The Federal Reserve bank is the main banking system of the United States. There are a total of 12 reserved banks, spread across America. This system was created by the Federal Reserve Act in 1913.

What is the BEP?

The BEP for U.S. Bureau of Engraving and Printing, are responsible for the designing and printing of paper money. It was formed on August 29, 1862 and its located in Washington D.C.

What is the U.S Mint?

The U.S Mint are responsible for producing money coins around the United States.