ECON308 Study Guide - Final Guide: Federal Reserve Act, Janet Yellen, Federal Funds Rate
19 Sep 2016
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Review for test 3: chapters 13, 14, 15, poole lecture. Know: origins of fed, resistance to establish a central bank a. i. Distrust of money interests: no lender of last resort b. i. Nationwide bank panics on a regular basis b. ii. Panic of 1907 so severe that the public was convinced a central bank was needed: federal reserve act 1913 c. i. Decentralized- 12 regional federal reserve banks: fed"s various activities and services, clear checks b. Janet yellen (chairman of the board of governors) has a 4 year term that is renewable: regulatory role of fed, factors that make fed independent and dependent on politicians a. Every central banks has some type of restriction on it b. ii. Fed"s structure is written by congress (federal reserve act 1913) b. iii. He/she appoints members to the board: the political business cycle, policy tools used by incumbent politicians hoping to stimulate the economy just prior to an election a. i.
