TEKS: Chapter 118. Economics See All Teacher Resources

118.4.c.13

(13) Economics. The student understands the role of the Federal Reserve System in establishing monetary policy. The student is expected to:

• (A) explain the structure of the Federal Reserve System;
• (B) analyze the three basic tools used to implement U.S. monetary policy, including reserve requirements, the discount rate and the federal funds rate target, and open-market operations;
• (C) explain how the actions of the Federal Reserve System affect the nation's money supply; and
• (D) analyze the decline in value of the U.S. dollar, including the abandonment of the gold standard.