The Federal Reserve

What is it? An organization organized like a corporation – owned by member banks, and directed by a government appointed board

Organization of the Fed. Directed by a 7 member Board of Governors Each member is appointed by the president and approved by the senate Serve for 14 years There are 12 independent banks and each reserve bank is responsible for a district An advisory commiittee advises the board and consists of representatives from each bank They meet 8 times a year to review the economy

The Fed. And Monetary Policy Monetary policy is the primary role of the fed – here, they make changes in the money supply Monetary policy is based on supply and demand

In groups… Each group gets one term – you must define that term and explain its role in fiscal policy There must be an illustration or example for each term