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Chapter Outline
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Major Duties and Responsibilities of the Federal Reserve System: Chapter Overview

Structure of the Federal Reserve System
Organization of the Federal Reserve System

Board of Governors of the Federal Reserve System

Federal Open Market Committee

Functions Performed by Federal Reserve Banks

Balance Sheet of the Federal Reserve
Monetary Policy Tools
Open Market Operations

The Discount Rate

Reserve Requirements (Reserve Ratios)
The Federal Reserve, the Money Supply, and Interest Rates
Effects of Monetary

Tools on Various

Economic Variables

Money Supply versus

Interest Rate Targeting
International Monetary Policies and Strategies
Impact of U.S. Monetary

Policy on Foreign Exchange Rates

Challenges of Other Major Central Banks







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