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Film: Inside the Fed 1. Explain the major functions and goals of the Federal Reserve System.

2. How many Federal Reserve Banks are there? 3. What does the Federal Reserve do with worn out money? 4. How does the Fed help banks in emergency situations?

5. What is the most important element of banking that the Fed provides?

6. When was the Fed created? By whom? What was its original purpose?

7. What is a run?

8. How does the Fed ensure that banks remain healthy?

9. Explain what is meant by monetary policy.

10. What is the primary cause of inflation?

11. How does inflation negatively affect the economy?

12. Explain the relationship between the money supply, interest rates, and prices in the economy.

13. How do the Feds actions to fight inflation effect unemployment?

Book Assignment: Read 418-424 and answer the following questions about the Fed: 1. Who technically owns the Fed? Why? 2. Why does the Fed have a regional structure? (2 reasons) 3. Who appoints top Fed Officials? 4. What does the Board of Governors do? How many members does it have? How long are their terms and why are they staggered? What is the Board of Governors primary function? 5. What is the primary function of the FOMC? 6. What Fed District would banks in Oconomowoc belong to? Where is that districts headquarters?

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