For release: Sept. 27, 2001
Contacts: Joe Elstner, (314) 444-8902; Dawn Griffitts, (314) 444-8421

"FED101" Web Site Demystifies the Federal Reserve

ST. LOUIS -- Most Americans know the Federal Reserve has a big influence on the economy and their money, but probably few could explain how the Fed does its job. Help is on the way, however, from a new web site that offers straightforward, jargon-free information for educators, students and anyone who wants to get a clearer picture of the Fed and how monetary policy works.

By logging on to www.FederalReserveEducation.org and then clicking on "FED101," web surfers can sail into colorful, enjoyable and easy-to-understand lessons on the Federal Reserve.

"The Federal Reserve has actively promoted economic education and better public understanding of the roles of the Federal Reserve System for many years," said Alan Greenspan, chairman of the Federal Reserve Board of Governors. "This web site is intended to improve the information resources available to educators, students and others with an interest in the nation's central bank and how it works."

Dawn Griffitts, economic education coordinator for the Federal Reserve Bank of St. Louis, calls the site a "business casual" approach to studying the Fed. "We're trying to make it easy for the public to know who we are and what we do," said Griffitts, who works with the 11 other Reserve Banks to coordinate the Federal Reserve System's educational efforts.

The web site is an outgrowth of "The Fed Today," an educational video about the Fed, narrated and hosted by broadcaster Charles Osgood, which takes viewers through the Fed's history and structure, as well as its role in monetary policy, banking supervision and financial services.
"The video provides a good overview, but we found that people wanted more detail, especially educators who are trying to teach students about the Fed," said Griffitts.

FED101 is spiced with interactive graphics, self-tests and quizzes. The site covers a wide variety of topics, including:

• The history of the Federal Reserve--An interactive timeline takes visitors from the beginning of U.S. currency to the Fed's role in today's economy.
• The Fed's structure and function --Visitors can get either a quick overview or more detailed information on how the Fed operates, including how the Fed chooses its boards of directors, and what Alan Greenspan and the other members of the Federal Open Market Committee (the Fed's policymaking body) do behind the scenes at a meeting.
• Monetary policy--This section answers the question, "How does the Fed create money?" and explores what happens when interest rates are raised or lowered.
• Banking supervision--Visitors can put on a bank examiner's hat and examine a "virtual bank" for safety and soundness, and then learn how their results compared with those of professional examiners.
• Financial services--This section includes a journey through the "life" of a dollar bill and the answer to the question, "Where does my check go?"

The developers of FED101 aimed the site at high school and college students and teachers, but anyone can enjoy or learn from the site. "The age group we're targeting--young adults--makes FED101 perfect for the general public," said Griffitts.

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