Beginning Activities Title today’s lesson: Federal Reserve System Beginning Activity: Copy the Chart on Page 408 Mission Statement: To prepare you for a life of responsible citizenship Daily Expectations: – No one leaves once class has begun. – Come in quietly and get to work immediately – Pay attention and be respectful – No phones – No food or drinks other than water – Do your work – Give AP quality effort 5 bonus points for supplies

Extra Credit 5 points each 6 weeks for bringing supplies: – Paper clips – Pens – Paper – Staples – Tape

Federal Reserve System Chapter 15 The Fed and Monetary Policy

Structure of the Fed Privately owned by member banks Board of Governors sets general policies. The 12 district banks accept deposits and make loans to banks. The federal Open Market Committee makes decisions about the growth of the money supply.

Regulatory Responsibilities Make sure that member banks have enough reserves to clear checks Oversee holding companies (corporations that own one or more banks) Supervises foreign banks that operate in the U.S. Approves bank mergers

Other Services Clears checks Consumer protection involved in loans Holds currency for the Treasury until it goes into the monetary system Replaces damaged currency Holds all the money for the federal government

Video Activity: Auditing the Fed Why did Rep. Grayson think we need to audit the Fed? Why did Ben Bernanke say Congress needs to stay out of the Fed? What shift in strategy does Rep. Grayson suggest? What is the fundamental key to improving the Fed, according to Rep. Grayson?

Ending Activity Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?