Federal Reserve
What year was the Federal Reserve created
1913
This federal agency insures bank deposits and was created in 1933
FDIC (Federal Deposit Insurance Corporation)
Why do government agencies regulate and supervise banks
To protect customers and maintain trust in the financial systems
Who are the customers of the Fed
Other banks
Why was the FDIC created
To restore trust in banks after thousands failed during the Great Depression
The ultimate purpose of the OCC is
To ensure a safe, sound, and competitive national banking system
How many Federal Reserve Banks are in the US
12
What term describes how banks earn profit from the difference between deposit interest and loan interest
The spread
What is one thing the OCC does besides supervise banks
Approve new charters or bank mergers
True or False: The Federal Reserve Banks do not serve individuals or businesses, only other banks
True
Why are banks often called the "Economy's Engine"
Because they lend money, help people pay bills, and grow the economy
What is the main job of the OCC
Supervising national banks and enforcing federal banking laws
What are the four services the Federal Reserve provides for the Federal Government
Affect monetary policy to influence the employment rate, prices, and short-term interest rates
Regulate banks and protect consumers’ financial rights
Stabilize the financial system and promote economic growth
Provide financial services to depository institutions, the US government, and central banks of other countries
What is one reason the banks couldn't return everyone's money deposits during the Great Depression
They invested the money and did not have enough cash on hand
What does OCC stand for
Office of the Comptroller of the Currency