1. Please follow the link provided by the notes to discuss the early history of U.S. Central Banks (the First U.S. Bank, The Second U.S. Bank, the Free Bank Era, and National Bank Era). In your discussion, please describe at least their background, formats (how are they organized), and achievements or problems which lead to the change.

2. What are the major functions of the Federal Reserve Banks? Among the 12 Federal Reserve Banks, what are special roles played by the Fed Reserve Bank of New York?

3. Describe what the Federal Open Market Committee is. Who can serve on the committee? What are the major functions played by the Federal Open Market Committee?

4. From governance structure perspective, discuss how the FED system takes care of the "fear of a central authority" and keeps the balance between public interest and private business.

5. Discuss the major cases pro for and against the central bank independence.

6. Using T-Account to describe the change in Monetary Base supply if the Fed purchases $200 Billions of government bond via QE program.

7. Using supply & demand in the market for reserves to illustrate the effect of:
a. The Fed sells government bond via open market operation