Federal Reserve

Federal Reserve

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  • Where can I put my extra money? 
  • Have you ever heard of the Federal Reserve?
  • The Ferderal Reserve was founded in 1913 by the United States Congress. It is the gate keeper of the US economy, and it is the bank of the US government. It was founded to keep peoples money safe, and it is located in Washington D.C. and there are 12 branches of it located around the country. 
  • I wonder who controls this big building.
  • Federal Reserve
  • I sure do think they can keep my money safe!
  • The people that control the Federal Reserve are the F.O.M.C and the Board of Government. These people are appointted by the president and confirmed by the Senate. The F.O.M.C. is the monetary policy making body of the Fed. 
  • Federal Reserve
  • Monetary Policy is how banks control liquidity to create economic growth. The amount of money in the money supply.  
  • $100,000
  • The fed contols the money supply through open market operations and by the sale of government bonds. The purchase of goernment bonds increase the money supply, but the sale of government bonds decrease the money supply
  • Now that my money is in a safe place, I wonder how the Fed controls all that money supply?
  • Federal Reserve 
  • Buy your bonds here!
  • Now that I trust banks, I will put the rest of my money in the banks.
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