THE FED

commercial paper

IF A MEMBER BANK WANTS TO BORROW MONEY IT CAN USE THIS AS COLLATERALL FOR A LOAN.

Which interest rate do banks use to offer consumer loans

PRIME RATES

discount rate

The Reserve district bank lends money to the member bank. This is called the

OPEN MARKET OPERATIONS

The buying and selling of government securities as a way to influence the money supply and balance economic growth describes ______.

DISCOUNT RATE

The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral is called the ______ rate.

Right of Recission

The three-business-day period following the latter of either the date that the transaction is consummated or the date the disclosure is made, during which a borrower can cancel their loan, is called the ______.

open market operations

are when government securities are bought and sold in the open market in order to increase or decrease the amount of money in the banking system.

FEDERAL OPEN MARKET COMMITTEE MEMBERS

consists of 12 members: Seven Board of Governor members President of the Federal Reserve Bank of New York Four presidents from the other Federal Reserve Banks (which serve on a rotating basis)

THE PURPOSE OF THE FED

designed to influence the supply of money and the cost to borrow money toward a three-part goal of maximum employment, stable prices, and moderate long-term interest rates.

FEDERAL OPEN MARKET COMMITTEE

enacts monetary policy with a goal of stable prices and economic growth. It does this by managing the countryʼs money supply.

Trading items on open-market operations is one of several ways the Fed influences the money supply and the economy. What item is bought and sold?

government securitites

FEDERAL RESERVE BANKS

has a nine-member board of directors. The banks are responsible to this board, which oversees the bankʼs activities and management. Members of the board of directors also serve on the Federal Open Market Committee.

prime rate

he interest rate the bank charges the most creditworthy consumers.

THE FEDERAL RESERVE SYSTEM

is the nation's money manager and central bank (however, it's actually comprised of 12 regional banks and multiple member banks).

TILA

purpose was to better educate the public about the costs of credit and financing through improved disclosures that are required of lenders and credit providers.

THE FEDERAL RESERVE BOARD

seven members, all appointed by the President and confirmed by the Senate. These members serve one 14-year term.