1. Pick up handout
Have your Progressive Amendment Poems ready to turn in.
Let Mrs Holmes know if you have planned an extra credit presentation.

2. Monetary Policy What does Monetary mean?

3. Federal Reserve Act Supported by President Wilson to restore
public confidence in the banks.
The Federal Reserve was established to restore public confidence in the banking system which had been collapsing.
Remember the Panic of 1893 and the Klondike Gold Rush
Created a network of 12 regional banks.
Each regional bank was authorized to issue currency, called Federal Reserve notes (paper money).

4. Federal Reserve
The Federal Government gained a strong hold on the economy by controlling the money supply
by controlling the money supply
promoting economic growth
protect against financial panics

5. From Gold Standard to Fiat Money
Gold Standard means that for every note printed there is an equal value of gold in some bank
Fiat Money is used as a medium of exchange and only has value because of regulation or law. Janet Yellen – Chair of Federal Reserve.

6. ECONOMIC DEVELOPMENT
The change from the Gold Standard to Fiat Money is caused by:
Economic growth
Government expansion
Increase in the population
Expansion of the US

7. Which regions’ banks might represent a large portion of (a) farm districts (b) urban interest (c) manufacturing interest?

8. MAP SKILLS Turn to page 400 in your textbook
Review the map at the bottom of the page “Federal Reserve Districts”
Read the caption to the side of the map and answer the questions