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

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

3. 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

4. C15S1: Federal Reserve System

5. 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

6. 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

7. 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

8. 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

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