1. FEDERAL RESERVE WEB
QUEST
BY KAITLIN KITCHENS

2. MAJOR EVENTS TIMELINE
1791- Print
first
money
1863National
Banking
Act
1907- Wall
Street Fail
1913Federal
Reserve
System
born
1929Great
Depression
1935Banking
Act of
1935
1951- The
Treasury
Accord
1980Monetary
Control
Act
2011- 9/11
occurs
2003Discount
Window
Operation
Changes
2007- m
great
depress
occur

3. STRUCTURE & FUNCTIONS
Board of Governors
Chairman, Vice Chairman
Federal
Advisory
Council
Consumer
Advisory
Council
Advisory
Committ
ess
Federal Reserve Banks (12)
Federal Reserve branches (25)
Member Banks (3,543)
Federal Open
Market
Committee
Thrift Institutions
Advisory
Council

4. QUIZ RESULTS

5. FEDERAL RESERVE DISTRICTS
•ATLANTA IS NUMBER 6

6. MONETARY POLICY
• 2 basic goals, to indorse maximum bearable output and
employment and to indorse stable prices.
• The tool they use is the federal fund rate through the
open market operation, federal funds market.
• Open market operations are the tool the federal
government uses to affect the supply of reserves in the
banking system.
• The FOMC is the system that is mainly in charge of going
through with the formulation and conduction of the
monetary policy.
• They typically conduct open market operations several
times a week to prevent technical, temporary forces
from moving the effective federal funds rate too far from
the intended rate.

7. FEDERAL TOOL KIT DESCRIPTIONS
• Tight or Easy Monetary Policy- used to reduce the
growth of money & credit
• Discount Rate- the interest rate used in discount
cash flow analysis to determine the present value of
future cash flow
• Open Market Operations- make adjustments in the
availability and price of short term funds to banks.
This is the most important policy tool.
• Reserve Requirements- the ability of the Feds’ to
raise or lower banks’ reserve requirement.

8. IN DEPTH- WHO SETS THE MONETARY
POLICY?
• The Federal Reserve set the Monetary Policy. They
overlook the amount of money and credit is in the
US Economy and influence it as well. Influencing
this, or making changes, directly affects the interest
rate, (the cost of credit), and what happens to the
US Economy. Putting this is more simple terms, if the
cost or credit is minimized, more people will borrow
money and the economy will stir up.

9. NEW VOCABULARY
• Lender of Last Resort- describing the Federal
Reserve’s role in providing funds to financial
institutions in a financial crisis
• Humphrey- Hawkins Testimony- congressional
testimony by the Federal Reserve Chairman about
the goals and objectives, and conduct of monetary
policy.
• Discount Window- lending facility through which
each Federal Reserve Bank extends and loans to
banks and other depository financial institutes.

10. PLAYING THE GAME
• At first it was hard to keep the economy on
track, but after playing around with numbers and
getting the hang of it, I did quite well.