Discussion on Functions of the FED
FUNCTIONS OF THE FED 81
4-1 Overview, 81 4-2 Organizational Structure of the Fed, 81
4-2a Federal Reserve District Banks, 82 4-2b Member Banks, 82 4-2c Board of Governors, 82 4-2d Federal Open Market Committee, 84 4-2e Advisory Committees, 84 4-2f Integration of Federal Reserve Components, 84 4-2g Consumer Financial Protection Bureau, 84
4-3 How the Fed Controls Money Supply, 84 4-3a Open Market Operations, 85 4-3b Role of the Fed’s Trading Desk, 88 4-3c How Fed Operations Affect All Interest Rates, 90 4-3d Adjusting the Reserve Requirement Ratio, 91 4-3e Adjusting the Fed’s Loan Rate, 92
Copyright 201 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
4-4 The Fed’s Intervention during the Credit Crisis, 93 4-4a Fed Loans to Facilitate Rescue of Bear Stearns, 94 4-4b Fed Purchases of Mortgage-Backed Securities, 94 4-4c Fed’s Purchase of Bonds Backed by Loans, 94 4-4d Fed’s Purchase of Commercial Paper, 94 4-4e Fed’s Purchase of Long-term Treasury Securities, 95 4-4f Perception of Fed Intervention During the Crisis, 95
4-5 Global Monetary Policy, 96 4-5a A Single Eurozone Monetary Policy, 96 4-5b Global Central Bank Coordination, 97