The Federal Reserve System
Chapter Learning Objectives...
AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO DO THE FOLLOWING:
- Discuss how the Federal Reserve responded to the recent financial crisis and Great Recession
- Identify three weaknesses of the national banking system that existed before the Federal Reserve System.
- Describe Federal Reserve membership in terms of who must join and who may join.
- Describe the composition of the Fed's Board of Governors.
- Discuss how the Fed uses reserve requirements to carry out monetary policy.
- Discuss how discount rate policy is employed by the Fed.
- Describe the Fed's use of open-market operations to alter bank reserves.
- Describe the ways in which the Reserve Banks accommodate the clearance and collection of checks.
- Discuss structural characteristics of central banks located in selected foreign countries.
Where We Have Been...
In Chapter 3, we discussed the types and roles of financial institutions that have evolved in the United States to meet the needs of individuals and businesses and help the financial system operate efficiently. We described the traditional differences between commercial banking and investment banking followed ...