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Federal Reserve
webquest
29
Economics
12th Grade
11/14/2010

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Cards

Term
What year was the Federal Reserve System created
Definition
1913
Term
Which president created the Federal Reserve System
Definition
Woodrow Wilson
Term
What year did the Federal Reserve Banks open
Definition
1914
Term
When was FDIC created
Definition
1933
Term
What was FDIC’s purpose?
Definition
The FDIC was created after the Great Depression in order to insure deposit holders against possible bank insolvency
Term
What were the 1990’s known for?
Definition
the longest peacetime economic expansion in US history
Term
How did the Federal Reserve respond to 9-11?
Definition
the same as it was following the 1987 depression- lowered interest rates and loaned money to financial institutions to stabilize the economy
Term
How many people sit on the Board of Governors?
Definition
7
Term
How are these positions on the Board of Governors filled?
Definition
These positions are filled by candidates appointed by the President and approved by Senate
Term
How long are their (Board of Governors) terms?
Definition
14-year staggered terms
Term
Responsibilities of the Board of Governors?
Definition
Board’s Responsibilities- guide monetary policy action, analyze economic and financial conditions, and study current events
Term
How many Federal Reserve Banks are there?
Definition
12
Term
How many branches of the Federal Reserve are there?
Definition
25 branches
Term
Why is it called the "Banker's Bank?"
Definition
it serves other banks, the Treasury, etc. by storing its currency and coin in the bank for the US government
Term
3 responsibilities of the Federal Reserve Bank
Definition
i. Monetary Policy- control the amount of money and credit in US economy- indirect control of economy
ii.Banking Supervision- supervise and regulate financial institutions, makes policy decisions. Watches banks’ following regulations
iii.Financial Services- provide services to depository institutions. For ex- collecting checks, electronically transferring funds, distributing/receiving cash and coin
Term
Which banks must be members of the federal reserve?
Definition
National banks
Term
What type of regulations are nonmember banks subject to?
Definition
system regulations and reserve requirements
Term
What does FOMC stand for?
Definition
Federal Open Market Committee
Term
What is the purpose of the FOMC?
Definition
-responsible for formulation of a policy designed to promote stable prices and economic growth
Term
Who are the voting members of the FOMC?
Definition
board of Governors, President of Fed. Reserve Bank of NY, & 4 other Reserve banks
Term
What district number do we live in?
Definition
Seventh
Term
Who is the president of our district?
Definition
Charles L. Evans
Term
Describe the territory we live in (what other states our district covers)
Definition
Iowa, and most of Illinois, Indiana, Michigan, Wisconsin
Term
What are the goals of monetary policy?
Definition
promote maximum employment, stable prices and moderate long-term interest rates.
Term
What are the 3 tools of monetary policy?
Definition
--Open Market Operations—involve the buying and selling of government securities. The term “open market” means that the Fed doesn’t decide on its own which securities dealers it will do business with on a particular day. Rather, the choice emerges from an “open market” in which the various securities dealers that the Fed does business with – the primary dealers – compete on the basis of price. Open market operations are flexible, and thus, the most frequently used tool of monetary policy.
--Discount Rate--the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.
--Reserve Requirements--the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank.
Term
Who is the chairman of the Fed?
Definition
Ben S. Bernanke
Term
When was Bernanke appointed?
Definition
February 1, 2006. Began his second term on February 1, 2010.
Term
What did Bernanke do before becoming the chairman?
Definition
He was the chairman of the President’s Council of Economic Advisers from June 2005-January 2006.
Term
How does the Federal Reserve create money?
Definition
Banks actually create money when they lend it. Here's how it works: Most of a bank's loans are made to its own customers and are deposited in their checking accounts. Because the loan becomes a new deposit, just like a paycheck does, the bank once again holds a small percentage of that new amount in reserve and again lends the remainder to someone else, repeating the money-creation process many times.
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