1. Economics Chapter 15 The Federal Reserve

2. Section 1: Organization and Functions of the Fed Created in 1913 Made to end periodic financial panics The Fed Set Monetary Policy – Amount of currency – Interest Rates

3. Organization Board of Governors – 7 members – 14 year term Federal Advisory Council – 12 members – Elected by 12 district banks – Meet 4 times a year – General business conditions

4. Organization Federal Open Market Committee – 12 members – 8 times a year – Currency, interest rates Banks – 25 branch banks

5. Functions Check clearing Regulating money supply Supplying paper currency Supervising banks Acting as government’s fiscal agent Holding reserves and setting reserve requirements