American Financial System

An independent agency of the federal government established in 1913 to regulate the nation’s banking and financial industry.

• Federal Reserve Board

• Monetary Policy

• Open Market Operations

• Reserve Requirement

• Discount Rate

Means by which the Fed controls the amount of money available in the economy.

• Federal Reserve Board

• Monetary Policy

• Open Market Operations

• Reserve Requirement

• Discount Rate

Decisions to buy or sell U.S Treasury Bills (short term debt issued by the U.S government) and other investments in the open market.

• Federal Reserve Board

• Monetary Policy

• Open Market Operations

• Reserve Requirement

• Discount Rate

The percentage of deposits that banking institutions must hold in reserves.

• Federal Reserve Board

• Monetary Policy

• Open Market Operations

• Reserve Requirement

• Discount Rate

The rate of interest the Fed charges to loan money to any banking institution to meet reserve requirements.

• Federal Reserve Board

• Monetary Policy

• Open Market Operations

• Reserve Requirement

• Discount Rate

The authority to establish and enforce credit rules for financial institutions and some private investors.

• Credit Controls

• Commercial Banks

• Savings and Loan Associations

• Credit Union

• Mutual Savings Banks

The largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds for loans to businesses and individuals.

• Credit Controls

• Commercial Banks

• Savings and Loan Associations

• Credit Union

• Mutual Savings Banks

Financial institutions that primarily offer savings accounts and make long term loans for residential mortgages.

• Credit Controls

• Commercial Banks

• Savings and Loan Associations

• Credit Union

• Mutual Savings Banks

A financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade group or religion.

• Credit Controls

• Commercial Banks

• Savings and Loan Associations

• Credit Union

• Mutual Savings Banks

Financial Institutions that are similar to savings and loan associations but, like credit unions, are owned by their depositors.

• Credit Controls

• Commercial Banks

• Savings and Loan Associations

• Credit Union

• Mutual Savings Banks