HGov: Federal Reserve Review

Studying1Congress created the Federal Reserve System in 1913 as the central banking organization in the United States. The Federal Reserve System, or Fed, as it is called, is made up of a Board of Governors assisted by the Federal Advisory Council, the Federal Open Market Committee, and 12 Federal Reserve district banks. The Fed is organized as a corporation, owned by its member banks, and directed by a government appointed board of governors. The Fed is responsible for monetary policy in theUnited States. Monetary policy involves changing the rate of growth of the supply of money in circulation in order to affect the amount of credit, which in turn affects business activity in the economy. The Fed also has broad authority over bank operations in a number of different areas including international banking and member bank mergers. Other services provided by the Fed include check clearing, enforcing consumer legislation, maintaining the quality of currency and coins in circulation, and providing financial services to the government.

1) Chapters 12 and 13 Quiz – Friday 12/4



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