Federal Reserve Flashcards
Who is responsible for monetary policy?
The Fed (headquartered in Washington, DC)
Where is Bern Bernanke from?
Dillon, SC
How many district Federal Reserve banks does the Board of Governors oversee?
12
Which member of the Board of Governors taught himself calculus?
Ben Bernanke
How many years are the members of the Board of Governors serve?
14 years
Who are the members of the Board of Governors appointed by?
The President
How many Federal Reserve banks are set up as corporations owned by member banks?
12
Twelve Federal Reserve banks are set up as what owned by member banks?
Corporation
Twelve Federal Reserve banks are set up as corporations owned by what banks?
Member banks
What make the decisions to raise or lower interest rates?
The FOMC
The FOMC make the decision to raise or lower what kind of rates?
Interest rates
What is the most important function of the Federal Reserve?
To regulate the money supply
What does monetary policy involve to change the cost and availability of credit?
Changing the growth rate of the money supply
What does loose money mean?
Credit it plentiful and inexpensive
What refers to credit plentiful, making it inexpensive?
Loose money
What does tight money mean?
Credit is in short supply and expensive
What refers to credit in short supply, making it expensive?
Tight money
What are many banks required to keep a percentage of their total deposits in?
Cash reserves
Currently most financial institutions are required to reserve how much percent of their checkable deposits?
3-10%
What is the interest rate the Fed charges its member banks when they borrow money to meet the reserve? (Not a percent)
The Discount Rate
In what occurrence including the discount rate does the Fed charge its member banks?
When they borrow money to meet the reserve
What is the interest rate banks charge to their best customers (Not a percent)
The Prime Rate
