federal reserve and you

• What is the Federal Reserve?

  Central Bank of the United States
• Why is the Fed considered decentralized

  Has twelve regional reserve banks
• What is an economy

  System by which good and services are bought, produced, and sold
• Fourth main function


  Issue Currency and Regulates Supply of Money
• Three Main Function of Fed

  • Gives out Payments
  • Supervision and Regulation
  • Monetary Policy
• Services of Regional Banks

  • Provide Services
  • Supervise & Regulate
  • Deeply Involved in region in terms of economic development
• Who is the group within the Fed that sets monetary policy?

  Federal Open Market Committee(FOMC)
• Who's within the Board of Directors(Regional)?

  3 Bankers chosen by Board of Governors(2 will be chosen for bank president and deputy chair) , 6 citizens, chosen as directors by member banks within region.
• Who votes in FOMC meetings

  5 members out of Bank Presidents(1 permanent is NY bank) and all 7 Board of Governors
• How is the Fed funded?

  Interest on government securities it holds and fees it charges for financial services it provides