1. Label next blank page The Federal Reserve
On a post-it write the standard and goals:
STANDARD: SSEMA2a-c
GOALS: 1)I will be able to describe how the Federal Reserve is organized.
2) I will be able to explain the tools used by the Fed to regulate money supply.
3) I will be able to explain and evaluate the role of monetary policy and the Fed.

2. The Fed was created by Congress in 1913.
THE FEDERAL RESERVE
Post-it w/
Standards & goals
The Fed…defined
The Fed…
Defined!
What is the Federal Reserve?
Roles, goals or purpose of
The Fed
The Fed was created by Congress in 1913.
-central bank of the US
- An independent organization created by Congress to keep our money valuable and our financial system healthy
Words to
Know
Structure Of
The Fed
- 1 of 3 federal bank regulatory agencies in the US
The Fed’s
Toolbox
- Guardian of payments system efficiency & effectiveness 44

3. Why was the Fed created? Role/Goal/Purpose: THE FEDERAL RESERVE
Post-it w/
Standards & goals
Why was the Fed created?
The Fed…
Defined!
Role/Goal/Purpose:
Roles, goals or purpose of
The Fed
1) To make sure there’s enough money & credit available to sustain economic growth, full employment without inflation
2) supervise/regulate banking institutions
Words to
Know
3) Maintain the payments system
Structure Of
The Fed
4) Preparing consumer legislation
5) Maintain money supply (printing & destroying of coins/currency)
The Fed’s
Toolbox
6) Acting as government’s bank 44

4. How’s the Fed organized/structured?
THE FEDERAL RESERVE
Post-it w/
Standards & goals
How’s the Fed organized/structured?
The Fed…
Defined!
Open textbook to page 400 and copy Figure 14.3 into this folder. You have 7 minutes.
Roles, goals or purpose of
The Fed
Words to
Know
Structure Of
The Fed
The Fed’s
Toolbox 44

5. Words to Know FDIC— Money supply— M1— M2— Interest rate—
THE FEDERAL RESERVE
Post-it w/
Standards & goals
Words to Know
The Fed…
Defined!
FDIC—
Money supply—
M1—
M2—
Interest rate—
Roles, goals or purpose of
The Fed
Words to
Know
Structure Of
The Fed
The Fed’s
Toolbox 44

6. The Fed’s Toolbox Open market operations — Discount rate—
THE FEDERAL RESERVE
Post-it w/
Standards & goals
The Fed’s Toolbox
The Fed…
Defined!
Open market operations —
buying & selling of government securities in financial markets
Discount rate—
Interest rate that the Fed charges on loans to the nation’s financial instiutions
Reserve requirement—
Amount of deposit that a bank/financial institution required to keep on hand
Roles, goals or purpose of
The Fed
Words to
Know
Structure Of
The Fed
The Fed’s
Toolbox 44

7. Label the top of the next page: Monetary Policy (& the Fed)
Actions used by the Fed (FOMC) to expand (increase) or contract (decrease) the money supply
What is MONETARY POLICY? Actions used by the Fed (FOMC) to expand (increase) or contract (decrease) the money supply 44 45