TAILIEUCHUNG - Lecture Financial markets and institutions: Chapter 4 - Anthony Saunders, Marcia Millon Cornett

Chapter 4 - The Federal reserve system, monetary policy, and interest rates. This chapter described the Federal Reserve System in the United States. The Federal Reserve is the central bank charged with conducting monetary policy, supervising and regulating depository institutions, maintaining the stability of the financial system, and providing specific financial services to the . government, the public, and financial institutions. | Chapter Four The Federal Reserve System, Monetary Policy, and Interest Rates 4- McGraw-Hill/Irwin The Federal Reserve Founded by Congress under the Federal Reserve Act in 1913 Subject to oversight by Congress under its authority to coin money An independent central bank–its decisions do not have to be ratified by the President 4- McGraw-Hill/Irwin Functions of the Federal Reserve Conduct monetary policy Supervise and regulate depository institutions Maintain financial system stability Provide payment and other financial services to the . government, the public, FIs, and foreign official institutions 4- McGraw-Hill/Irwin Structure of the Federal Reserve Divided into 12 Federal Reserve districts, each with a main Federal Reserve Bank Federal Reserve Banks operate under the general supervision of the Board of Governors of the Federal Reserve The Office of the Comptroller of the Currency (OCC) charters national banks, which are members of the Federal Reserve System (FRS) FRS member banks “own” the 12 Federal Reserve Banks 4- McGraw-Hill/Irwin Board of Governors of the FRS Seven member board headquartered in Washington, DC President appoints and Senate confirms members to nonrenewable 14-year terms President appoints and Senate confirms Chairman and vice-chairman to renewable 4-year terms Formulates and conducts monetary policy and supervises and regulates banks 4- McGraw-Hill/Irwin Federal Open Market Committee (FOMC) FOMC consists of 12 members seven members of the Board of Governors the president of the Federal Reserve Bank of NY the presidents of four other Federal Reserve Banks (on a rotating basis) The monetary policy-making body of the FRS Policies seek to promote full employment, economic growth, price stability, and a sustainable pattern of international trade 4- McGraw-Hill/Irwin Federal Open Market Committee (FOMC) The FOMC sets ranges for growth of monetary aggregates and the fed funds rate, and also directs FR operations in FX .

• Tài chính doanh nghiệp
• Financial markets
• Financial institutions
• Lecture Financial markets and institutions
• Financial institutions markets
• Federal reserve system
• Monetary policy
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation