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WHAT DOES THE FED DO? Background, Activities and Critical Analysis
Source: Federal Reserve Education | Type: lesson
The Federal Reserve System is our nation’s central bank. Composed of the 12 regional federal Reserve Banks and the Board of Governors in Washington, D.C., the Fed serves three crucial functions in our economy. It establishes and implements monetary policy, regulates and supervises banks, and operates the payments system. The Fed serves as a “bankers’ bank” and the U.S. government’s bank.
- Discount Rate
- Federal Reserve
- Monetary Policy
- Open Market Operations
- Reserve Requirements
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Very detailed lesson with great, practical hands-on activities that show just what the Fed does. Also includes how and why people use banks, how banks make money, and loan applications. Students will get an understanding of the importance of banking that will apply to them personally.
This lesson had excellent activities and simulations that help explain what actually happens to deposits and loans by using bank style documents to demonstrate procedures in banking through a 'class bank'. It also explains the role of the FED in controlling the money supply.