1 / 4

The Modern Federal Reserve System

The Modern Federal Reserve System. Fed Functions The Federal Reserve System’s Traditional Functions. Conducting the Nations’ Monetary Policy. Supervising and Regulating Financial Institutions. Providing Payment Services to Financial Institutions. Conducting the Nation’s Monetary Policy

cael
Télécharger la présentation

The Modern Federal Reserve System

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Modern Federal Reserve System Fed Functions The Federal Reserve System’s Traditional Functions Conducting the Nations’ Monetary Policy Supervising and Regulating Financial Institutions Providing Payment Services to Financial Institutions

  2. Conducting the Nation’s Monetary Policy The Federal Reserve System’s primary function is to conduct monetary policy. Monetary policy is used to achieve the Fed’s primary economic goals of maximum employment, price stability, and moderate long-term interest rates. Monetary Policy Tools Open market operations—The purchase and sale of U.S. Treasury and federal agency securities by the Federal Reserve System through the Federal Open Market Committee; the Federal Reserve’s principal tool for implementing monetary policy. The discount window—Federal Reserve lending programs to financial institutions. The reserve requirement—The percentage of a bank’s deposits it is required to hold as cash in its vaults and/or on deposit with the Federal Reserve.

  3. Supervising and Regulating Financial Institutions The Federal Reserve System is charged with helping to protect the integrity of the nation’s financial institutions. The Fed examines and regulates depository institutions to help ensure the safety and soundness of the financial system, to promote stability in financial markets, and to promote compliance with applicable laws. Regulations are written by the Board of Governors of the Federal Reserve System, and the Federal Reserve Banks supervise the institutions. Through supervision and regulation, the Fed reinforces the public’s confidence in the banking system.

  4. Providing Payment Services to Financial Institutions The Federal Reserve System provides services to depository institutions and the federal government. Just as banks hold cash and process checks and electronic payments for customers, the Fed holds cash reserves and processes checks and electronic payments for depository institutions.

More Related