Unit 4 (Part 2): The Federal Reserve

The Fed's major purpose is to conduct _______________________________ policy for the USA

Who runs the Federal Reserve?

Raising the reserve requirement ____________ the amount of money in supply

This is what we call the % of deposits banks must keep in their vaults

What do we call the process of changing the amount of money in supply?

The government buying bonds _________ the amount of money in supply

The Federal Reserve is considered a national bank

This is what we call the buying and selling of US bonds and securities

The FOMC, part of the Fed, can make 3 major types of decisions. What are they?

This is the amount of interest paid by banks for loans they get from their regional Fed. Bank

This is the tool for monetary policy the FOMC uses most often

There are ____ regional branches of the Federal Reserve

Lowering the discount rate ________ the amount of money in supply

Providing the FDIC is one of the responsibilities of the Fed

What is the FDIC?