Term
| What year was the Federal Reserve System created |
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Definition
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| Which president created the Federal Reserve System |
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Definition
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| What year did the Federal Reserve Banks open |
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Definition
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Definition
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Definition
| The FDIC was created after the Great Depression in order to insure deposit holders against possible bank insolvency |
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Term
| What were the 1990’s known for? |
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Definition
| the longest peacetime economic expansion in US history |
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Term
| How did the Federal Reserve respond to 9-11? |
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Definition
| the same as it was following the 1987 depression- lowered interest rates and loaned money to financial institutions to stabilize the economy |
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Term
| How many people sit on the Board of Governors? |
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Definition
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| How are these positions on the Board of Governors filled? |
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Definition
| These positions are filled by candidates appointed by the President and approved by Senate |
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| How long are their (Board of Governors) terms? |
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Definition
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| Responsibilities of the Board of Governors? |
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Definition
| Board’s Responsibilities- guide monetary policy action, analyze economic and financial conditions, and study current events |
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Term
| How many Federal Reserve Banks are there? |
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Definition
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Term
| How many branches of the Federal Reserve are there? |
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Definition
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Term
| Why is it called the "Banker's Bank?" |
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Definition
| it serves other banks, the Treasury, etc. by storing its currency and coin in the bank for the US government |
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Term
| 3 responsibilities of the Federal Reserve Bank |
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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 |
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Term
| Which banks must be members of the federal reserve? |
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Definition
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Term
| What type of regulations are nonmember banks subject to? |
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Definition
| system regulations and reserve requirements |
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Term
| What does FOMC stand for? |
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Definition
| Federal Open Market Committee |
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Term
| What is the purpose of the FOMC? |
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Definition
| -responsible for formulation of a policy designed to promote stable prices and economic growth |
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| Who are the voting members of the FOMC? |
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Definition
| board of Governors, President of Fed. Reserve Bank of NY, & 4 other Reserve banks |
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Term
| What district number do we live in? |
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Definition
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| Who is the president of our district? |
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Definition
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Term
| Describe the territory we live in (what other states our district covers) |
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Definition
| Iowa, and most of Illinois, Indiana, Michigan, Wisconsin |
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Term
| What are the goals of monetary policy? |
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Definition
| promote maximum employment, stable prices and moderate long-term interest rates. |
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Term
| What are the 3 tools of monetary policy? |
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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. |
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Term
| Who is the chairman of the Fed? |
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Definition
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Term
| When was Bernanke appointed? |
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Definition
| February 1, 2006. Began his second term on February 1, 2010. |
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Term
| What did Bernanke do before becoming the chairman? |
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Definition
| He was the chairman of the President’s Council of Economic Advisers from June 2005-January 2006. |
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Term
| How does the Federal Reserve create money? |
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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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