fed structure and function
structure
members of the Board of Governors serve 14-year terms appointments are staggered one term expiring every two years to ensure stability and continuiti and the group
function
monetary policy involves managing the nation system of money and credit the FED uses three tools to carry out its monetary policy goals discount rate reserve requirements and open market operations
function
open market operations and involves buying and selling treasury securities
function
the responsibilities of the Federal Reserve System include fostering a healthy economy promoting stable prices and sustainable economic growth and fostering the sound baking system
function
the three responsibilities of the Federal Reserve System are conducting monetary policy supervising and regulating banks in providing Financial Services
structure
there are 12 federal reserve banks
function
the most important tool of monetary policy is open market operations
both
Fire Federal Reserve Bank presidents are voting members of the Federal Open Market Committee
function
Three Financial Services that the FED offers are Distributing Coin & Currency processing checks and offering electronic forms of payment
both
individuals are able to open Accounts at federal reserve banks are branches
function
regulation defines acceptable behavior for financial institutions supervision involves enforcement of the rules the Board of Governors writes the regulations the Federal Reserve Banks supervise financial institutions in their districts
structure
the Board of Governors has seven members who are appointed by the u.s. president and approved by the Senate
both
the Board of Governors writes regulations that make commercial Banks financially sound works with research Economist and support staff to study Trends and forecast future economic conditions oversees the Federal Reserve Banks and most important participates in Federal Open Market Committee meetings
structure
the Federal Open Market Committee includes the Board of Governors + 5 Federal Reserve Bank presidents
function
the Federal Reserve System influences the money supply
function
the Federal Reserve System was originally created to address banking panics two important goals when the Fed was established for providing emergency cash reserves for banks and developing an efficient National payment system
structure
the Federal Reserve combines National Authority through the Board of Governors with regional Independence through the 12 Reserve Banks
both
the Federal Reserve is the nation's Central Bank
structure
the chairman and vice-chairman of the Board of Governors are appointed by the u.s. president to serve four-year terms the chairman reports twice a year to Congress on the fed's monetary policy objectives
function
the fed both regulates the banking system and supervises financial institutions
function
the federal funds rate is the interest rate Banks charge one another for overnight loans
