Tugas Unit 8

THE FEDERAL RESERVE SYSTEM

1.How many Federal Reserve Banks are there in the United States?
The territory of the United States is devided into twelve Federal Reserve Bank in major city.

2.Who sets the policies of these banks?
The policies of these banks sets by the Board of Governors of the Federal Reserve System.

3.How do Federal Reserve Banks extend credit to member banks?
Federal Reserve Banks may extend credit to member banks through advances and rediscounts.

4.How does the Board of Governors influence the money supply of the United States?
The Federal Reserve Board can also influence the volume of activity on the Stock Exchanges by setting margin requirements for the purchase of securities.

5.What can the Board of Governors do with United States Government securities?
For instance, the Board can buy or sel! United States Government securities, thus increasing or decreasing the amount of money in circulation.