Mr. Nunn

The Federal Reserve System

Federal Reserve System

• The Federal Reserve System or the Fed- is the central bank of the United States.

Board of Governors of the Federal Reserve System

• Board of Governors of the Federal Reserve System- the governing body of the Federal Reserve System.

• Seven Members appointed for 14 years by the President.

• The chairperson serves 4 year terms.

Federal Reserve District Banks

• Twelve exists acts like a “branch” bank to the Federal Reserve.

Federal Open Market Committee

• FOMC- the 12 member policy-making group within the Fed. This committee has the authority to conduct open market operations.

The Responsibilities of the Fed.

• Control the money supply.

• Supply the economy with paper money (Federal Reserve notes).

• Hold Bank Reserves.

The Responsibilities of the Fed Continue.

• Provide check-clearing services.

• Supervise member banks.

• Serve as the lender of last resort.