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