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Business > FED > Flashcards

FED Flashcards

1
Q

What does FED stand for?

A

Federal Reserve System

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2
Q

Who established the FED?

A

Congress

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3
Q

When was the FED created?

A

1913

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4
Q

What is the purpose of the FED

A

Manage Monetary Policy

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5
Q

Who established the IRS?

A

Congress

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6
Q

When was the IRS established?

A

1913

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7
Q

What was the IRS established to do?

A

Be an agent of Fiscal Policy

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8
Q

What is “The Federal Reserve System Mission” (4 Things)

A

Minimize Inflation
Minimize Recession
Minimize Unemployment
Encourage Stable Economic Growth

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9
Q

“The Federal Reserve System Mission” can be accomplished through?

A

Monetary Policy

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10
Q

Monetary Policy is in control of what?

A

The Nation’s Money Supply

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11
Q

Monetary Policy - 3 Things

A
  1. Inflationary - More money leads to more spending.
  2. Recessionary - Less Money leads to less spending and tends.
  3. Balance - The Objective is to have a managed money supply.
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12
Q

3 Tools of the FED

A
  1. Setting Reserve Requirements
  2. Setting Discount Rate & FED Funds Rate
  3. Open Market Operations
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13
Q

Setting Reserve Requirement

A

FED sets limits for Banks & Credit Unions.

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14
Q

Discount Rate

A

Rate charged by the FED when banks borrow from the FED.

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15
Q

FED Funds Rate

A

Rate charged when banks borrow from other banks.

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16
Q

Open Market Operations

A

Buying or selling U.S. Government Securities

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17
Q

Highest Level of Management

A

Fed Board of Governors

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18
Q

How many members in the Fed Board of Governors?

A

7 members

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19
Q

How many year term in office for the Fed Board of Governors?

A

14 year term

20
Q

Who appoints the Fed Board of Governors?

A

President

21
Q

Who confirms the Fed Board of Governors?

A

Senate

22
Q

Who is the current Chairman?

A

Janet Yellen

23
Q

How many Federal Reserve Districts?

A

12

24
Q

How many Federal Reserve Banks?

A

37

25
Q

What is Fiscal Policy?

A

Government Taxation & Spending

26
Q

Who carries out Fiscal Policy? (4)

A
  1. Federal Government
  2. State Government
  3. Local Government
  4. Public Schools
27
Q

Monetary Policy

A

Control over the nation’s money supply.

28
Q

US Government Securities (4)

A
  1. Treasury Bills
  2. Treasury Bonds
  3. Treasury Notes
  4. U.S. Savings Bonds
29
Q

Government Securities add up to equal?

A

National Debt

30
Q

Attributes which make Treasury Securities attractive to investors? (5)

A
  1. Safe
  2. Stable
  3. Low Risk/Return
  4. Problem Free
  5. Always a Market
31
Q

Who buys Treasury Securities? (6)

A
  1. Foreign Government
  2. Insurance Companies
  3. Individuals
  4. Colleges/Universities
  5. Banks
  6. Corporations
32
Q

Call Report

A

A report created every 6 weeks by BANKS and CREDIT UNIONS that includes statistical data from DEPOSITS and LOANS.

33
Q

Where are Call Reports sent?

A

Vice President of Research of the District.

34
Q

Complied Call Reports

A

The Vice President of Research compiles all the Call Reports from their District.

35
Q

Where are Call Reports sent?

A

Federal Reserve Headquarters in Washington, DC.

36
Q

Beige Book Report

A

The Federal Reserve Research staff compiles all of the 12 Compiled Call Reports into a final report.

37
Q

What is the Beige Book Report used for?

A

Used by the Board of Governors to make Monetary Policy decisions.

38
Q

Who carries out Monetary Policy?

A

FED

39
Q

Money in banks come from? (5)

A
  1. Deposits
  2. Interest from Loans
  3. Fees
  4. Stocks
  5. Selling Bonds
40
Q

What Federal Reserve District are we in?

A

7

41
Q

Where is our Federal Reserve Bank located?

A

Chicago

42
Q

Buying U.S. Government Securities does what?

A

Puts Money back IN to the economy.

43
Q

Selling U.S. Government Securities does what?

A

Takes Money OUT of the economy.

44
Q

How often does a Fed Board of Governor member’s term expire?

A

2 years

45
Q

Import/Export Activities

A

International Trade carried out by Commercial Manufacturing and Sale’s Companies.

46
Q

Creation of Money

A

Outcome of Commercial Banking Activities, primarily loans and checking operations.

Business (10 decks)

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