U.S. Economic Institutions

The Treasury Department An executive department, established in 1789 Secretary of the Treasury – Head of the department and a member of the President’s cabinet; – Current Treasury Secretary: Timothy Geithner Responsibilities: – Manages the government’s finances and accounts; – Advises on domestic and international financial, economic, monetary, trade and tax policy; – Collects all taxes, duties and other monies owed to the U.S. and investigates/prosecutes all tax evaders, counterfeiters, forgers, smugglers etc.

The Money Makers Bureau of Engraving and Printing – Division of the Treasury Dept. – Responsible for designing and producing all paper currency for the Federal Reserve; – Creates the anti-counterfeit technology used in U.S. currency U.S. Mint – Division of the Treasury Dept. – Responsible for designing and producing all coins

The Taxman The Internal Revenue Service (IRS) – Division of the Treasury Dept. – 16 th Amendment gives Congress the power to tax income Responsibilities: – Tax collection – Tax law enforcement

The Bank The Federal Reserve (a.k.a. “The Fed”) is the central banking system of the U.S. – An independent government agency – created in 1913 by Congress and President Woodrow Wilson Current Chairman – Ben Bernanke Responsibilities: – Establishes the nation’s monetary policy through it’s ability to control the money supply and influence interest rates; – Supervises and regulates U.S. banking and financial institutions

The Watchdog Securities and Exchange Commission (SEC) – an independent government agency – Established by Congress in 1934, after the great crash of 1929 Responsibilities: – Enforce federal securities law – Regulate the stock market and protect investors from corporate abuse

The Safety Net Federal Deposit Insurance Corporation (FDIC) – An independent government agency – Established in 1933 in response to the thousands of bank failures during the Great Depression Intended to restore/promote public confidence in the U.S. banking system Responsibilities: – Currently insures individual deposits up to $250,000 – Funded through the premiums charged to participating banks, backed by the federal government