In this module, you will learn about the establishment of the Federal Reserve System, its history, its structure and its functions.
When you have finished this module, you should be able to:
- Explain that the Federal Reserve System is the central bank of the United States.
- Explain how members of the Board of Governors are chosen.
- Explain the structure of the Board of Governors.
- Describe the three components in the structure of the Federal Reserve System.
- Explain the three responsibilities of the Federal Reserve: conducting monetary policy, supervising banks and providing financial services.
- Explain why the Fed is called the bankers’ bank.
- Define monetary policy.
- Explain the difference between regulation and supervision.
Before we get started, please take a minute and answer the following questions. We will ask you these questions again after you have completed the module.