COPYRIGHTED MATERIAL
EXPLORING 21st CENTURY SKILLS AND ISSUES
Name: _____________________________________________________________________________
$ide Trip to the Federal Reserve Bank Government “banks” responsible for deciding how much legal tender to issue and when to issue it, are called central banks , reserve banks or in some places, monetary authority . They are government-created and authorized, but independent institutions. In the U.S., the Federal Reserve Bank (the “Fed”) is the bank of the federal government. What do you know about this very important agency? (You can link to videos through c21student.com) Your resources for this exercise are: • Learning Markets, The Goals of the Federal Reserve (www.learningmarkets.com/the-goals-of-the-federal-reserve) • federalreserveeducation.org “About the Fed – by Function” • Workbook pages 57-58 1. According to the Fed, what is monetary policy ? (federalreserveeducation.org – About the Fed) _ ______________________________________________________________________________ 2. What are the Fed’s three tools of monetary policy ? (About the Fed – Monetary Policy) _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 3. According to the Fed, what is inflation and how does it it affect the economy? (About the Fed – Monetary Policy) _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 4. What is the name of the Fed’s monetary policy making body (committee)? (About the Fed – Monetary Policy) _ ______________________________________________________________________________ 5. Who is the current chair of the Board of Governors of the Federal Reserve Bank? (Research outside of site.) _ ______________________________________________________________________________ 6. How does one become a governor of the Federal Reserve Board? (About the Fed; Structure and Functions.) _ ______________________________________________________________________________ It is what the Fed does to influence the amount of money and credit in the U.S. The Federal Open Market Committee (FMOC) Janet Yellen They must be appointed by the president and confirmed by the Senate . • Open market tool : buying and selling government securities • discount rate: setting the interest rate on the money it charges in loans to banks • Reserve requirements: the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank. Inflation is a sustained increase in the general level of prices. It is equivalent to a decline in the value or purchasing power of money. If the supply of money and credit increases too rapidly over time , the result could be inflation . PRODUCT PREVIEW
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Lesson 4 | The Money Morph
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