Exploring the Functions of the U.S. Federal Reserve Bank

The video explores the role of money in society and the trust placed in currency, focusing on the Federal Reserve's creation and its impact on the U.S. economy. It delves into the chaotic history of U.S. currency before the Federal Reserve Act of 1913, which established a more stable monetary system. The structure of the Federal Reserve, including its Board of Governors and regional banks, is explained. The video also covers the Fed's role in implementing monetary policy to ensure price stability, preventing inflation and recession. Additionally, it highlights the Fed's responsibilities in bank supervision and financial services, as well as its adaptation to technological advancements to maintain a stable economy.

What is commonly referred to as a $20 bill in official terms?

• Dollar Bill

• Banknote

• U.S. Treasury Note

• Federal Reserve Note

What was a major problem with currency in the U.S. before the Federal Reserve?

• Too many types of currency

• Lack of gold reserves

• Overproduction of silver coins

• Single currency system

What year was the Federal Reserve System created?

• 1900

• 1913

• 1925

• 1899

How is the Federal Reserve System structured?

• Privately owned corporation

• Non-profit organization

• Decentralized central bank

• Government operated entity

What is the primary focus of the Federal Reserve's monetary policy?

• Currency printing

• Maximizing employment

• Interest rate adjustments

• Price stability

What does the Federal Open Market Committee do?

• Sets guidelines for buying and selling government securities

• Manages the national debt

• Regulates stock exchanges

• Oversees federal tax collection

How does the Fed influence the amount of money in circulation?

• By buying and selling securities

• Setting tax rates

• Changing interest rates

• Directly printing money

What role does the Fed play in the banking system?

• Operates retail banks

• Supervises and regulates banks

• Provides loans to individuals

• Issues credit cards

What is one of the Fed's responsibilities in its regulatory role?

• Controlling import and export tariffs

• Managing state budgets

• Ensuring banks follow laws

• Setting educational standards

What technological advancements has the Fed incorporated to improve efficiency?

• Virtual reality for training

• Blockchain technology

• Electronic scanners and data processing systems

• Artificial intelligence for decision making