Federal Reserve Board Flashcards, test questions and answers
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What is Federal Reserve Board?
The Federal Reserve Board (FRB) is an independent government agency that is part of the Federal Reserve System, the central banking system of the United States. The FRB sets monetary policy and helps ensure the safety and soundness of financial institutions.The FRB is composed of seven members appointed by the President and approved by Congress. It serves as a regulator for banks, provides banking services to depository institutions, issues currency, holds deposits from commercial banks and other financial institutions, sets reserve requirements for depository institutions, manages public debt operations, supervises consumer credit protection programs and more. The FRB also issues regulations designed to protect consumers from unfair or deceptive practices in the financial marketplace. The primary responsibility of the FRB is to manage monetary policy in order to maintain price stability while promoting maximum employment. This involves setting interest rates on loans made through its discount window facility (which provides funds at discount rates), setting reserve requirements for depository institutions (the amount of money they must keep on hand), managing open market operations (the buying and selling of government securities in order to influence interest rates) and acting as lender-of-last resort during times when there are liquidity problems in financial markets. The FRB also works with other federal agencies to foster economic growth by monitoring bank safety and soundness standards, monitoring systemic risk within the U.S. economy, providing data on economic trends through its Beige Book reports published eight times per year as well as its annual Economic Report to Congress which outlines current economic conditions and forecasts future prospects for growth or recession in various sectors including housing sales data that may indicate a potential downturn or rebound in home prices over time periods such as one month or several months ahead. Additionally it takes part in discussions around global standards related to capital flows into countries with emerging economies or vulnerable currencies which may put pressure on exchange rates; this helps create a level playing field between foreign exporters who may have their own set of rules when dealing with local laws governing trade transactions between countries.