Part 1 of Essay
In exploring in the United States, it is essential to define what is meant by . can be defined as the policy decisions and actions by the Federal Reserve System (Fed) that affect the banking system and money supply. This may seem vague, but by decisions and actions, we mean the goals, tools, and targets of the Fed. In ....

Part 2 of Essay
.... of the Fed is included in the Appendix to this paper. The Board of Governors is the most important group within the Fed. The Board consists of seven members, each appointed for 14 years by the President of the United States. The chair of the Fed, also appointed by the President, has a term of 4 years, and is sometimes said to be the second most powerful man in the country. The Fed is an inde-pendent agency, and thus does not take orders from either the President or Congress. Page 2 The US is divided into ....