Monetary Policy and Bank Regulation (Economics)

Recall cards on monetary policy and bank regulation. Central banks and the Federal Reserve: its three functions, its semi-decentralized structure, the Board of Governors, and the 12 regional banks. Bank regulation: bank supervision, bank runs, deposit insurance and the FDIC, and the lender of last resort. The three tools of monetary policy: open market operations, the reserve requirement, and the discount rate, plus the federal funds rate and quantitative easing. Expansionary (loose) versus contractionary (tight) policy, how each shifts interest rates and aggregate demand, and why policy should be countercyclical. Pitfalls: the quantity equation of money, velocity, long and variable lags, excess reserves, and inflation targeting.