1. Chapter 16 Section 1 and 2

2.  The Fed in American History ◦ Monetary Policy  The actions the Fed takes to influence real GDP and rate of inflation ◦ Reserves  Deposits that banks keep readily available; not lending ◦ Reserve requirements  The amount that banks are REQUIRED to keep

3.  Board of Governors ◦ 7 governors, 14-year term, Chairman; appointed by President  Federal Reserve Banks ◦ 12 banks/districts, 9 board members

5.  Member Banks ◦ Nationally chartered banks join the Fed; banks own the system (have stock)  FOMC – Federal Open Market Committee ◦ Makes decisions about interest rates and growth of M2

6.  Banker and Agent  Issuing Currency

7.  Check Clearing ◦ Check writer, recipient, Fed Reserve Bank, Check Writer’s bank  Supervising Lending Practices  Lender of Last Resort

8.  Reserves  Bank Examinations

9.  The Demand for Money  Stabilizing the Economy

10.  http://sffed-education.org/chairman/ http://sffed-education.org/chairman/  Wait for instructions