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    Federal Reserve System

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    Explain the role of the Federal Reserve System and the 12 Federal Reserve Banks.

    Discuss the Federal Open Market Committee (FOMC) and the Federal Funds Rate.

    What do they do to manage the economy and the money supply? How do they control inflation and deflation?

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    Solution Preview

    The Fed is responsible for conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of
    - maximum employment,
    - stable prices, and
    - moderate long-term interest rates.
    It is also responsible for supervising and regulating banking institutions by
    - ensuring the safety and soundness of the nation's banking and financial system, and
    - protecting the credit rights of consumers.
    It is responsible for maintaining the stability of the ...

    Solution Summary

    This solution of 324 words discusses the Federal Reserve System's roles, what the federal funds rate is and explains management of the economy and money supply.