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11 Cards in this Set

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  • Back
3 units make up the Federal Reserve System
Board of Governors; Reserve Banks; FOMC
Board of Governors
federal government agency
Reserve Banks
operational arms of Federal Reserve
Federal Open Market Committee
sets monetary policy
Discount Rate
interest rate banks must pay when borrowing funds from the Federal Reserve Bank
Federal Funds Rate
interest rate that banks loan each other in $1 million blocks to satisfy Federal Reserve requirements
Reserve Requirements
requirements on depository institutions to maintain reserves in vertain proportions against various "checkable" or "transaction" deposits
Open Market Operations
allows the Federal Reserve to directly ajdust the supply of reserves in the banking system
Federal Reserve Chairman
Ben Bernanke
Federal Open Market Committee
policymaking body, meets 8x a year and has 12 members
FOMC 2 Basic Goals
1. promote max output and employment
2. promote stable prices