Download WEB ACTIVITIES

WEB ACTIVITIES
1.
Log on to www.federalreserve.gov and read the description of the role of the
Federal Reserve System. Summarize the role of the Federal Reserve System from
this information.
The Fed describes its four general areas of responsibility as:
 Conducting the nation’s monetary policy.
 Supervising and regulating banking institutions and protecting the credit rights of
consumers.
 Maintaining the stability of the financial system.
 Providing certain financial services to the U.S. government, the public, financial
institutions, and foreign official institutions.
2.
Log on to www.federalreserve.gov/pubs/frseries/frseri.htm and find a
description of the current structure of the Federal Reserve System. Summarize
the structure of the Federal Reserve System from this information.
The Fed was created on December 23, 1913 by an Act of Congress. The System
consists of a seven member Board of Governors with headquarters in
Washington, D.C., and twelve Reserve Banks located in major cities throughout
the United States.
3.
Log on to www.federalreserve.gov/policy.htm then click on the Monetary Policy
Report to Congress. Click on the most recent report and access the section on
Monetary Policy and Economic Outlook. Read the report and summarize the
Fed’s perception of the economy and their monetary policy response.
The answer to this question will depend upon when you access the report.
4.
Log into www.federalreserve.gov/releases/h15/ and click on the most recent release data.
Find the general trend for the Federal funds interest rate. What have been the likely
actions of the Fed that have caused the interest rates to move in the directions shown?
The answer to this question will depend upon when you access the report. The
most frequently used tool of the Fed is Open Market operations and changing
the discount rate.