Econ: The Federal Reserve System 15-1

It works to strengthen and stabilize the nations monetary system. It provides financial services to the government, regulates financial institutions, maintains the payment system, enforces consumer protection laws, and conducts monetary policy.

1) Private ownership: it's owned by its member banks. 2) Board of Governors 3) Federal Reserve District Banks 4) Federal open market committee 5) advisory committees

Commercial banks that are members of, and hold stock in the Federal Reserve.

The Fed is owned by its member banks, which buy shares, individual banks may or may not belong to the Fed, National Banks HAVE to belong,

There are 7 members on the board, and appointed by the President, approved by the Senate, they serve 14 years, an appointment becomes available every 2 years. The board serves as a regulatory and supervisory agency. They set general policy to follow. Reports to congress every year.

There are 12 Federal Reserve district banks and 25 branch banks that are situated near the banks they serve.

FOMC makes decisions about t he growth of the money supply and the level of interest rates. It has 12 voting members, 7 members from the Board of Governors, the president from the New York district bank, and 4 district presidents that serve 1 year. The other district presidents participate but can't vote

1) Federal Advisory council: representatives from the 12 district banks and advise the Fed on the overall health of the economy. 2) Consumer Advisory Council: 30 members meet 3 times a year on consumer credit laws 3) Thrift Institutions Advisory Council: representatives from savings and loans associations, savings banks, credit unions. They advise on matters pertaining to the thrift industry.

Corporations that own one or more banks

1) State member banks must maintain reserves against their costumes deposits. The Fed monitors this 2) Bank Holding Companies: the Fed have power to regulate the activities of the holding companies so they don't evade restrictions 3) international operations: the Fed has broad authority to supervise and regulate foreign banks. Foreign banks are examined annually, the Fed can terminate the domestic operations of foreign banks. 4) member bank mergers: the merger is two or more banks requires the approval of the appropriate federal banking authority

1) clearing checks, enforcing consumer legislation(truth in lending law), maintaining currency and coin, providing financial services to the government

Print paper money

Produces coins

The paper money

Metallic forms of money such as pennies, nickels ect...