C15S1: Federal Reserve System Main Idea: The Federal Reserve works to strengthen and stabilize the nation’s monetary system.

C15S1: Federal Reserve System Key Terms: Member bank Bank holding company Regulation Z

C15S1: Federal Reserve System Structure of the Fed Private Ownership The Fed is owned by its member banks Consists of all national banks and some state banks

C15S1: Federal Reserve System

C15S1: Federal Reserve System Structure of the Fed Board of Governors 7 members appointed by the president to 14 year terms Supervise and regulate the Fed

C15S1: Federal Reserve System Structure of the Fed Federal Reserve District Banks 12 District banks receive funds from the member banks and in return give stock to the members Federal Open Market Committee Makes decisions about the growth of the money supply and interest rates

C15S1: Federal Reserve System Structure of the Fed Advisory Committees Has 3 advisory committees Federal Advisory Council – reps from 12 district banks Consumer Advisory Council – 30 members to meet about consumer credit laws Thrift Institutions Advisory Council

C15S1: Federal Reserve System Regulatory Responsibilities State Member Banks Monitor their reserves International Operations Fed can supervise foreign banks in the US Member Bank Mergers If two or more member banks want to merge, the Fed must approve it

C15S1: Federal Reserve System Other Federal Services Clearing checks Consumer legislation, truth-in-lending laws