ECON308 Lecture Notes - Lecture 9: Open Market Operation, Commercial Bank, Monetary Policy
6 Jan 2018
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Chapter 13: central bank / reserve bank / monetary authority, 1791 first national bank. Ended in 1811: 1816 second national bank. Vetoed by andrew jackson in 1836: 1836 - 1813 no central bank, federal reserve was created as a lender of last resort, quasi-public: privately owned, publicly operated, class a directors: professional bankers. Excluded from choosing the president of the federal reserve bank by dodd frank act in. 2010: class b directors: leaders from industry agriculture, commerce labor, class c directors: appointed by the board of governors of federal reserve. Must not be of cers, directors, employees or share holders of any bank. Functions of the federal reserve banks: issue does not = print, the bureau of engraving and printing prints federal reserve notes, the us mint produces coins. Figure 2 federal reserve system: the federal reserve bank of new york is important. Its district contains many of the largest commercial banks in the us.
