Chapter+16.1+HW

Chapter 16.1 Notes Key Terms Board of Governors: the seven-member board that oversees the Federal Reserve System Monetary Policy: the actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy Federal Reserve Districts: the twelve banking districts created by the Federal Reserve Act Federal Advisory Council: the research arm of the Federal Reserve Federal Open Market Committee: Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply

Structure of the Federal Reserve - The Board of Governors - 12 District Reserve Banks - Member Banks - The Federal Open Market Committee

Chapter 16.1 Assessment 1. Who serves on the Board of Governors of the Federal Reserve? - 7 members the oversee the Federal Reserve System 2. What is monetary policy? - actions the Fed takes to influence the level of real GDP and the rate of inflation in the economy 3. Describe the makeup of the Federal Reserve Districts - 12 banking districts, monitors and reports on economic and banking conditions in its district 4. What does the Federal Advisory Council do? - collects info about each district 5. What is the role of the Federal Open Market Committee? - makes key decisions about interest rates and the growth of the US money supply