|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
Abstract
The Federal Reserve System is an independent agency that is comprised of 12 regional Federal Reserve Banks. The main focus of the Federal Reserve is to maintain full employment and to prevent inflation. Three tools are used by the Federal Reserve Board to help with their economic goals; they are monetary policy, open market operations, and discount rates. The most well known monetary policy is the short-term increase or decrease of interest rates, which the Federal Reserve uses to indirectly affect inflationary trends and full employment.
Federal Reserve System
Overview
The Federal Reserve, also know as the Fed, is the Central Bank of the United States and was formed, by congress, in 1913 to provide the United States with a safer monetary and financial system. As an independent agency the Federal Reserve is accountable to Congress by virtue that Congress can modify the Federal Reserve Act at any time (Federal Reserve, 2003 p. ... Today the Federal Reserves responsibilities are: “establishing the nations monetary policy, supervising and regulating banking institutions and protecting the credit rights of consumers, maintaining the stability of the financial system, and providing certain financial services to the U. ... government, the public, financial institutions, and foreign official institutions” (Federal Reserve, 2003 p. ...
Even though the Federal Reserve is known as the central bank they are decentralized and are comprised of 12 regional Reserve Banks that are led by 3 separate boards or committees. The Board of Governors providing representation at the federal level, the District Directors, provide representation at the district level, and the Federal Open Market Committee (FOMC, 2003 p. 1) govern the Reserve Banks monetary policies and operations (Obringer, 2002 p. ...
The Federal Reserve System’s most important role is to manage the nations money and economy through controlling inflationary or recessive economic trends and maintaining high levels of employment and production. ...
Chairman of the Federal Reserve Board
Alan Greenspan, Chairman of the Board of Governors, is serving his fourth 4-year term as chairman. ... Greenspan has an extensive background as part of the Federal Reserve System and has served as Chairman of the Federal Open Market Committee. ...
Monetary Policy
“The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. ... 1) The Federal Reserve establishes monetary policy through the use of 3 methods these methods are the open market operations, the discount rate, and reserve requirements.
Approximate Word count = 2003
Approximate Pages = 8
(250 words per page double spaced)
|
|
|
|
|
|