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14 Cards in this Set
- Front
- Back
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When was the fed established |
1913 as US central bank |
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Define central bank |
An institution charged with controlling a nations money supply |
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Major central banks |
Federal reserve, bank of Japan, European Central Bank, Bank of England , people's bank of china |
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Chairman of board of governors |
Janet yellen
There are 7 governors with 14 year terms |
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How many district banks are there and how many have a president |
12. and each has one. That is regional in scope
Dallas bank is the sun bank in Houston |
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What is the federal open market Committee made of |
Board of governors and the 12 district banks |
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How many times a year does the FOMC meet and what do they di |
8 times a year. They vote on policy (direction of interest) all 7 governors will vote including the NYC president plus four rotating presidents
And acts independent of the rest of govt. |
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Two major functions of FOMC |
1) pursues monetary policy 2) lender of last resort |
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Define monetary policy |
Policy that influences the flow of the money and credit in the economy |
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What influences the interest rates, inflation, and currency values? |
Monetary policy |
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Banks must keep a certain percentage of transactions deposits known as |
Reserves |
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Reserves are |
Vault cash Deposits held at the fed |
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Ratio of reserves stands at ... |
10% |
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Ot |
C |
