(LO 4.1) Describe the weaknesses of the national banking system that was in place prior to passage of the Federal Reserve Act of 1913.

(LO 4.2) Describe the organizational structure of the Federal Reserve System in terms of its five major components.

(LO 4.3) Discuss the structure, the functions, and the importance of the Federal Open Market Committee.

(LO 4.4) Identify and briefly describe the three traditional instruments that may be used by the Fed to set monetary policy. (LO 4.4) Describe what is meant by quantitative easing by the Fed.