{"id":3423,"date":"2017-02-24T18:46:53","date_gmt":"2017-02-24T16:46:53","guid":{"rendered":"https:\/\/www.konusarakogren.com\/blog\/?p=3423"},"modified":"2018-09-26T10:14:26","modified_gmt":"2018-09-26T07:14:26","slug":"the-business-of-fed","status":"publish","type":"post","link":"https:\/\/www.konusarakogren.com\/blog\/the-business-of-fed\/","title":{"rendered":"The BUSINESS of FED"},"content":{"rendered":"

America is still the biggest power in the world today, both politically and economically. But as things are not great at the political side, we will discuss its economy. To be precise, we will discuss the business of FED.<\/p>\n

\u201cSo, what is FED?\u201d you may ask. Let me break it down for you: Fed stands for the central bank of U.S. It is commonly known as FED and it regulated the monetary and financial system of the U.S. It is also called, officially, the Federal Reserve.<\/p>\n

\"bank\"<\/a><\/p>\n

The creation of FED was actually to save the nation from \u201cfinancial panics\u201d in 1913, with the enactment of Federal Reserve Act. In 1907, New York Stock Exchange fell almost by half and this led to a financial crisis in the following 3 weeks. This state of panic gradually spread over the whole nation. Banks and businesses began to enter bankruptcy, because vast numbers of people across the nation started to withdraw their money from the local banks.<\/p>\n

Local banks did not have any say in other banks and the U.S. had to watch this local financial crisis became spread over the whole country. If there was a central bank that would control this trend and help out these banks, this crisis might have been avoided.<\/p>\n

With Great Depression in 1930s and Great Recession in 2000s, the role of Federal Reserve System was expanded. Not this institution\u2019s main target was to avoid another 1907 financial crisis, but gradually the targets of FED also got expanded.<\/p>\n

Other responsibilities of the Federal Reserve System includes maximizing employment, stabilizing prices, supervising and regulating banking institutions, to strengthen U.S. standing in the world economy.<\/p>\n

Vocabulary<\/h2>\n

Target: Aim, goal<\/p>\n

To expand: To get bigger<\/p>\n

To regulate: To control or maintain<\/p>\n

To strengthen: To make stronger<\/p>\n

To avoid: To keep away from<\/p>\n

Questions<\/h2>\n

What does \u201cFED\u201d stand for?<\/p>\n

    \n
  1. Federal Reserve<\/li>\n
  2. Federal Education<\/li>\n
  3. Federal Forces<\/li>\n
  4. Federal Finance<\/li>\n<\/ol>\n

    What happened in 1907?<\/p>\n

      \n
    1. FED was created<\/li>\n
    2. There was a financial crisis<\/li>\n
    3. Local banks were doing OK<\/li>\n
    4. New York Stock Exchange gained profits<\/li>\n<\/ol>\n

      According to the passage, which of the following is not a responsibility of the FED?<\/p>\n

        \n
      1. Maximizing employment<\/li>\n
      2. Stabilizing the prices<\/li>\n
      3. Strengthening the U.S. standing<\/li>\n
      4. Employing new graduates of Economics Department<\/li>\n<\/ol>\n

        [toggle title=”Answers”]<\/p>\n

        (1) Federal Reserve<\/p>\n

        (2) There was a financial crisis<\/p>\n

        (4) Employing new graduates of Economics Department
        \n[\/toggle]<\/p>\n","protected":false},"excerpt":{"rendered":"

        America is still the biggest power in the world today, both politically and economically. But as things are not great at the political side, we will discuss its economy. To<\/p>\n","protected":false},"author":1,"featured_media":3424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[594],"tags":[],"class_list":["post-3423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ingilizce-okuma"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/posts\/3423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/comments?post=3423"}],"version-history":[{"count":0,"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/posts\/3423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/media\/3424"}],"wp:attachment":[{"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/media?parent=3423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/categories?post=3423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.konusarakogren.com\/blog\/wp-json\/wp\/v2\/tags?post=3423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}