ECON 2305 Lecture24Outline of Last Lecture I. Money Outline of Current LectureI. Federal Reserve BankingCurrent Lecture Are we becoming a cashless society? Something government would love because it could see where all the money is going. Federal Reserve Banking System: Established in 1913Consists of a Board of Governors 7 appointed members with 14 year termsSupervises the entire banking systemAdminister protective regulations in consumer financeHas power over Federal Reserve Banks12 banksPropose discount rates Furnish currency Federal Open Market Committee Made of Board of Governers and 5 reserve bank presidentsDirects open market operations – buying and selling existing US government securities. Functions of the FEDSupplies the economy with fiduciary currencyHolds depository institution’s reserves and provides payment-clearing systemsActs as government’s fiscal agentSupervises depository institutionsConducts monetary policyIntervenes in foreign currency marketsActs lender of last resortThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
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