The federal Reserve system

• Economie

Chapter 16:The Federal Reserve and Monetary Policy

Section 1: The Federal Reserve System

Pages 474-479

Objectives

Examine the purpose and duties of a central Bank

Analyze the structure of the Fed

Debate on the importance of a central bank

Central bank is a nation’s main monetary authority, which is able to conduct certain
monetary practices. 

Monetary means “relating to money.

The Federal Reserve System is the central bank of the United States and is commonly called the Fed.

What is the other name of a central bank of United states?

1. Central Bank
2. Bank of America
3. American Bank
4. Fed

There are three common duties that all central banks perform: holding reserves, assuring stability of the banking and monetary systems, and lending money to banks and the government.

How does the central bank control the money supply?

Answers

Central bank holds reserves to influences the amount of loanable funds banks have available.

How is confusion avoided when notes are issued by individual banks?

Answers

Central Banks controls the way money is issued and circulated.

Structure of the Fed

1.Board of governors

2.Twelve District Banks

3.Member Banks

4.​Federal Open Market Committee

5.Advisory Councils

How commercial banks are there in member banks?

1. 2500
2. 5000
3. 2900
4. 3000

Who sets up the policy for the banks?

Answers

Board of governors

How do member banks provide funding for the Fed?

Importance of central bank

Central banks play a crucial role in ensuring economic and financial stability. They conduct monetary policy to achieve low and stable inflation.

Why do you think every country should have a central bank? Or how does it help during a financial crisis?

Give the important terms of the lesson .