How the federal reserve is organized and the feds major


The Federal Reserve System

1: How the Federal Reserve is organized

2: The Fed's major policy tools

3: How open market operations work

Monetary Policy: the use of money and credit controls to influence macroeconomic outcomes Pres Wilson, Fed Reserve Act, Dec. 1913

Federal Reserve System: 12 Fed Reserve Banks: each acts as central banker for private banks in region.

• Clearing checks between private banks
• Hold bank reserves - fraction of deposits in local banks, rest in fed reserve banks
• Providing currency -
• Providing loans

Fed's control of money supply is exercised by use of 3 policy tools:
• Reserve requirements
• Discount rates
• Open market operations

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: How the federal reserve is organized and the feds major
Reference No:- TGS01035677

Expected delivery within 24 Hours