The Federal Reserve (Fed) serves as the nation’s central bank
It is designed to oversee the banking system. It regulates the quantity of money in the economy.
The Fed’s Organization

The Fed is run by a Board of Governors （董事局）, which has seven members appointed by the President and confirmed by the Senate（参议院）.

The Federal Reserve System（联邦储备 体系）is made up of the Federal Reserve Board in Washington, D.C., and twelve regional Federal Reserve Banks （联邦储备银行）.
The Fed’s Organization
Liquidity（流动性）

Liquidity is the ease with which an asset can be converted into the economy’s medห้องสมุดไป่ตู้um of exchange.
The Kinds of Money

Commodity money（商品货币） takes the form of a commodity with intrinsic value（内在价值）.
The Federal Reserve

The Fed was created in 1914 after a series of bank failures convinced Congress（国会） that the U.S. needed a central bank to ensure the health of the nation’s banking system.
The Meaning of Money

Money is the set of assets（资产） in the economy that people regularly use to buy goods and services from other people.
Three Functions of Money
The Fed’s Organization

The chairman of the board presides at board meetings, directs the staff, and testifies about Fed policy.
The Fed’s Organization

Money has three functions in the economy. Medium of exchange（交换媒介） Unit of account（计量单位） Store of value（贮藏价值）
Medium of Exchange

A medium of exchange is anything that is readily acceptable as payment.
Money in the Economy


Currency（通货） is the paper bills and coins in the hands of the public. Demand deposits（活期存款） are balances in bank accounts that depositors can access on demand by writing a check.

Monetary policy（货币政策） is conducted by the Federal Open Market Committee（公开市场委员会）.
Three Primary Functions of the Fed

Regulates banks to ensure they follow federal laws intended to promote safe and sound banking practices.
Unit of Account

A unit of account is the yardstick people use to post prices and record debts.
Store of Value

A store of value is an item that people can use to transfer purchasing power （购买力） from the present to the future.
四、货币理论与货币政策 MONETARYTHEORYANDM ONETARYPOLICY
金融资产结构


货币与货币供给 M 0 =流通中现金 M 1 = M 0 +活期存款 M 2 = M 1 +定期存款 M 3 = M 2 +其他短期流动资产（如国库券、 银行承兑汇票、商业票据）+外汇存款 有价证券：分为政府债券和企业债券两种。 股票。
中央银行职能


垄断发行本国的法定货币。 以债务方式接受存款机构缴存的存款准 备金，以垫款或票据再贴现方式对存款 机构发放贷款，承担金融机构之间的票 据交换和结算业务。 代理国库，即经办政府的收支，管理国 家的外汇，制定和实施国家的金融政策。
The Federal Reserve联邦储备体系
Examples: Gold, silver, cigarettes

Fiat money（法定货币） is used as money because of government decree.
It does not have intrinsic value. Examples: Coins, currency, check deposits