Decisions regarding purchases and sales of government securities by the Fed are made by the:

The Federal Open Market Committee (FOMC) is one branch of Federal Reserve System responsible for: Group of answer choices Approving discount rate Setting Federal Funds Rate Target Range Recommending Discount rate

According to the reading, the Fed's mission is to: promote easy access to commodity money. promote maximum employment and stable prices. promote high interest rate for savers. promote an understanding of its role in the economy.

When the Fed decreases the discount rate, banks are likely to the money supply their lending and A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases

Discuss the structure and organization of the U.S. Federal Reserve

Which of the following is NOT a function of the Fed? OPTIONS: Regulating the money supply Holding reserves for depository institutions Lending funds to credit-worthy private firms Supervising member banks

The Federal Reserve (also called the Fed) is the central bank of the United States. The Fed oversees the currency and money supply. The Fed system consists of five major parts: (1) the board of governors, (2) the Federal Open Market Committee, (3) 12 Federal Reserve banks, (4) three advisory councils, and (5) the 3,000 member banks in the system. The board of governors administers and supervises the 12 Federal Reserve banks. The 7 members of the board are appointed by the President of the United States and confirmed by the U.S. Senate. The Federal Open Market Committee has 12 voting members and is the policy-making body. The Federal Reserve is a private firm not supported by taxpayer dollars. The Fed buys and sells foreign currencies, regulates various types of credit, supervises banks, and collects data on the money supply and other economic activity. The Fed's actions directly affect everyone in terms of credit card rates, consumer prices, and student loan rates. The Fed uses three…

Following the Great Recession, the Federal Reserve adopted a restrictive reserve policy.   true  false

In this Decision Point activity you learned about how changes to monetary policy by the Federal Reserve should impact your own decisions and the decisions of everyone across the economy. Apply what you learned in this decision point to the following questions. One of the tools the Fed uses to influence interest rates is to pay banks interest on excess reserves they hold overnight with the Fed. You're a director at a bank. Your bank currently holds $185 million in excess reserves at the regional Fed and you're earning an annual rate of 2.42% on those excess reserves sitting at the Fed. The Fed decides to decrease the interest rate it pays on excess reserves from an annual rate of 2.42% to 1.55%. In response, you should the amount of excess reserves held at the Fed and make any given interest rate. loans at

Which of the following is NOT one of the three tools used by the Fed to implement US monetary policies? discount rate printing more money open market operations reserve requirement regulations