The Federal Reserve System

GUIDE TO READING Main Idea

As our nation's central bank, the Federal Reserve Is a regulatory agency? It serves as the government's bank. It controls monetary policy In the United States.

Key Terms central bank, Federal Open Market Committee (FOMC), monetary policy, discount rate, reserve, open market operations

Reading Strategy Categorizing Information

As you read, describe In a graphic organizer like the one below the various roles played by the Federal Reserve in the economy of the United States.

Read to Learn

• How Is the Federal Reserve System organized? « What role does the Federal Reserve play In the economy?

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