Chapter 2 Flashcards
Federal Reserve or Fed job
( 12 regional Federal Reserve District Banks located throughout the country)
manipulating interest rates
changing reserve requirements
selling securities.
sound banking system and a strong economy
Federal Fund rate
Banks can get short-term loans from other banks when they are in danger of dropping below required reserve level.
U.S. Department of Treasury
(The Treasury Department is divided into departments and bureaus. The bureaus make up 98% of the Treasury Department.)
maintain a strong economy and create economic and job opportunities.
They handle revenue collection, money production, and economic policy.
The Office of the Comptroller of Currency (OCC) is appointed by who?
the President ,serves as director of the Federal Deposit Insurance Corporation (FDIC).
occ jobs ?
examine banks.
accept or reject new bank applications.
take managerial actions against banks that do not comply with laws and regulations.
FDIC activities
Federal deposit insurance corporation
1.insure bank and thrift institution deposits only to a set amount
2. identify, monitor, and address risks to the deposit insurance funds
3.limit the effect a bank or thrift institution failure has on the national economy / insuring bank and thrift institution deposits up to $250,000.
FHLB
Bring stability to savings and loan associations.largest source of funding for mortgage lending for nearly eight decades.
Community Investment Program (CIP)
offer below-market-rate loans for lower- and moderate-income families and neighborhoods. This program is designed to be an economic catalyst.
Discount rate
The interest rate charged by the Fed to its member banks when they need to borrow additional reserves.
Prime rate
The interest rates the bank charges its borrowers
reserve ratio
The percentage of reserves a bank is required to hold against deposits.
Open market operations
When the Fed buys and sells government securities.
Bank credit
Bank loans and purchases of securities that make the money stock larger than the monetary base.
FDIC Office of the Ombudsman
confidential, neutral, and independent source of information and assistance to anyone affected by the FDIC in its regulatory, resolution, receivership, or asset disposition activities.
Advances
Secured loans the FHLB make to their members
