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Unit 2 Money and Regulation
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keep the value of the dollar stable.
The Fed charges fees for the services provided to its member banks.
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is applied to the US national debt.
Stability of the Financial System
From the beginning, the Fed has helped to establish the stability of
showed that the early banking system was flawed and unstable. It relied
on individuals rather than an organization.
By issuing regulations and supervising its member banks, the
Fed works hard to ensure that your money is safe. In fact, the Fed
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monitors the economy, supervises and regulates member banks,
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environment that promotes the growth and success of American
individuals and businesses.
Checkpoint 5.3
1. How does the Fed conduct monetary policy?
2. When is the discount rate set?
3. What are some customer services offered by Federal Reserve
Banks?
4. What does the Fed do with the money it earns?
5. How does the Fed use its entire toolset to maintain the stability of the
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Build Your Vocabulary
As you progress through this course, develop a personal glossary
of banking terms and add it to your portfolio. This will help you build your
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and add it to your personal glossary.
monetary policy
discount rate
prime rate
reserve requirement
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th e n ati o n a l d e bt.