Transcript ? Congress: The Fiscal Authority The Federal Reserve: The Monetary Authority Buys and Sells T-bills from commercial banks as a means of changing the level of bank reserves and.

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Congress:
The Fiscal Authority
The Federal Reserve:
The Monetary Authority
Buys and Sells T-bills
from commercial banks
as a means of changing
the level of bank
reserves and hence
changing the money
supply.
The US Treasury:
Collects taxes and
spends the tax take.
Finances the Deficit
by issuing T-bills.
Runs as deficit:
Deficit = G - T
A T-bill is an I.O.U.
Ben Bernanke
Federal Reserve
Tim Geithner
U.S. Treasury
TIM GEITHNER
BEN BERNANKE